What changed in American Electric Power's 2024 10-K compared to 2023?

Across the narrative sections we track, American Electric Power (AEP) added 262 paragraphs, removed 294, and edited 201 between the 2023 and 2024 10-K filings. The biggest movers are Item 1. Business (+151/−180), Item 1A. Risk Factors (+80/−84), Item 2. Properties (+13/−14).

Did American Electric Power add new Risk Factors in the 2024 10-K?

Yes — Item 1A Risk Factors shows 80 new/edited paragraphs and 84 removed paragraphs versus the 2023 10-K.

What changed in American Electric Power's MD&A (Item 7) in 2024?

Item 7 Management's Discussion & Analysis shows 3 new/edited paragraphs and 3 removed paragraphs year-over-year. Read the side-by-side diff to see exactly which revenue, margin, and outlook commentary was rewritten.

Did American Electric Power update its Cybersecurity disclosure (Item 1C) in 2024?

Item 1C Cybersecurity has 9 paragraph-level changes between the 2023 and 2024 filings.

Where does this AEP 10-K diff come from?

The source filings are American Electric Power's official 2023 and 2024 Form 10-K annual reports from SEC EDGAR. 10q10k.net parses each filing, aligns paragraphs by section (Item 1, 1A, 1C, 2, 3, 7, 7A), and highlights every added, removed and edited sentence side-by-side.

What changed in American Electric Power's 10-K — 2023 vs 2024

Paragraph-level year-over-year comparison of American Electric Power's 2023 and 2024 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2024 report.

+262 added−294 removedSource: 10-K (2025-02-13) vs 10-K (2024-02-26)

Top changes in American Electric Power's 2024 10-K

262 paragraphs added · 294 removed · 201 edited across 7 sections

Item 1. Business+151 / −180 · 108 edited
Item 1A. Risk Factors+80 / −84 · 66 edited
Item 2. Properties+13 / −14 · 11 edited
Item 1C. Cybersecurity+9 / −7 · 7 edited
Item 5. Market for Registrant's Common Equity+5 / −5 · 5 edited

Item 1. Business

Business — how the company describes what it does

108 edited+43 added−72 removed79 unchanged

2023 filing

2024 filing

Biggest changeWe ensure the pay we offer is competitive in the marketplace by pricing many of our positions using robust compensation survey information. Nearly all AEP employees participate in an annual incentive program that rewards individual performance and achievement of business goals, which fosters a high-performance culture.

Biggest changeNearly all AEP employees participate in an annual incentive program that rewards individual performance and achievement of business goals, fostering a high-performance culture. AEP also offers paid time off in the form of vacation, holidays, sick time, and parental leave. 7 BUSINESS SEGMENTS AEP’s Reportable Segments AEP’s primary business is the generation, transmission and distribution of electricity.

AEP Texas APCo I&M KGPCo KPCo OPCo PSO SWEPCo WPCo Principal Industries Served: Petroleum and Coal Products Manufacturing X X X X X Chemical Manufacturing X X X X X X X X Oil and Gas Extraction X X X X Pipeline Transportation X X X X X X Primary Metal Manufacturing X X X X X X Data Processing (a) X X Coal-Mining X X X Paper Manufacturing X X X X Transportation Equipment X X Plastics and Rubber Products X X X X Fabricated Metals Product Manufacturing X Food Manufacturing X Supply and Market Electric Power at Wholesale to: Other Electric Utility Companies X X X X X X Rural Electric Cooperatives X X X Municipalities X X X X X Other Market Participants X X X X X X (a) Primarily includes data centers and cryptocurrency operations.

AEP Texas APCo I&M KGPCo KPCo OPCo PSO SWEPCo WPCo Principal Industries Served: Petroleum and Coal Products Manufacturing X X X X X Chemical Manufacturing X X X X X X X X Oil and Gas Extraction X X X X Pipeline Transportation X X X X X X Primary Metal Manufacturing X X X X X Data Processing (a) X X X Coal-Mining X X X Paper Manufacturing X X X X Transportation Equipment X X Plastics and Rubber Products X X X X Fabricated Metals Product Manufacturing X Food Manufacturing X Supply and Market Electric Power at Wholesale to: Other Electric Utility Companies X X X X X X Rural Electric Cooperatives X X X Municipalities X X X X X Other Market Participants X X X X X X (a) Primarily includes data centers and cryptocurrency operations.

Short-term debt may also be used to finance acquisitions, construction and redemption or repurchase of outstanding securities until such needs can be financed with long-term debt. In recent history, short-term funding needs have been provided for by cash from operations, AEP’s commercial paper program and term loan issuances. Funds are made available to subsidiaries under the AEP corporate borrowing program.

Short-term debt may also be used to finance acquisitions, construction and redemption or repurchase of outstanding securities until such needs can be financed with long-term funding. In recent history, short-term funding needs have been provided for by cash from operations, AEP’s commercial paper program and term loan issuances. Funds are made available to subsidiaries under the AEP corporate borrowing program.

The FERC also requires all transmitting utilities, directly or through an RTO, to establish an Open Access Same-time Information System, which electronically posts transmission information such as available capacity and prices, and requires utilities to comply with Standards of Conduct that prohibit utilities’ transmission employees from providing non-public transmission information to the utility’s marketing employees.

AEGCo, APCo, I&M, KGPCo, KPCo and WPCo are members of PJM. PSO and SWEPCo are members of SPP. The FERC has jurisdiction over certain issuances of securities of most of AEP’s public utility subsidiaries, the acquisition of securities of utilities, the acquisition or sale of certain utility assets and mergers with another electric utility or holding 14 company.

I&M has made and will make purchases of uranium in various forms in the spot, short-term and mid-term markets. For purposes of the storage of high-level radioactive waste in the form of SNF, I&M completed modifications to its SNF storage pool in the early 1990’s.

I&M has made and will make purchases of uranium in various forms in the spot, short-term, mid-term and long-term markets. For purposes of the storage of high-level radioactive waste in the form of SNF, I&M completed modifications to its SNF storage pool in the early 1990’s.

The primary regulatory programs that continue to drive investments in AEP’s existing generating units include: (a) periodic revisions to NAAQS and the development of SIPs to achieve more stringent standards, (b) implementation of the regional haze program by the states and the Federal EPA, (c) regulation of hazardous air pollutant emissions under MATS, (d) implementation and review of CSAPR and (e) the Federal EPA’s regulation of greenhouse gas emissions from fossil generation under Section 111 of the CAA. 3 Clean Water Act Requirements The Federal EPA’s ELG rule for generation facilities establishes limits for FGD wastewater, fly ash and bottom ash transport water and flue gas mercury control wastewater, which are implemented through each facility’s wastewater discharge permit.

The primary regulatory programs that continue to drive investments in AEP’s existing generating units include: (a) periodic revisions to NAAQS and the development of SIPs to achieve more stringent standards, (b) implementation of the regional haze program by the states and the Federal EPA, (c) regulation of hazardous air pollutant emissions under MATS, (d) implementation and review of CSAPR and (e) the Federal EPA’s regulation of GHG emissions from fossil generation under Section 111 of the CAA. 3 Clean Water Act Requirements The Federal EPA’s ELG rule for generating facilities establishes limits for FGD wastewater, fly ash and bottom ash transport water and flue gas mercury control wastewater, which are to be implemented through each facility’s wastewater discharge permit.

OVEC financed capital expenditures in excess of $1 billion in connection with flue gas desulfurization projects and the associated scrubber waste disposal landfills at its two generation plants through debt issuances, including tax-advantaged debt issuances. Both OVEC generation plants are operating with the environmental controls in-service. See Note 17 - Variable Interest Entities and Equity Method Investments for additional information.

OVEC financed capital expenditures in excess of $1 billion in connection with flue gas desulfurization projects and the associated scrubber waste disposal landfills at its two generation plants through debt issuances, including tax-advantaged debt issuances. Both OVEC generation plants are operating with the environmental controls in-service. See Note 18 - Variable Interest Entities and Equity Method Investments for additional information.

These options include pre-approvals, a return on construction work in progress, rider/trackers, formula rates and the inclusion of future test-year projections into rates. 13 The rates of AEP’s vertically integrated public utility subsidiaries are generally based on the cost of providing traditional bundled electric service (i.e., generation, transmission and distribution service).

These options include pre-approvals, a return on construction work in progress, rider/trackers, formula rates and the inclusion of future test-year projections into rates. 12 The rates of AEP’s vertically integrated public utility subsidiaries are generally based on the cost of providing traditional bundled electric service (i.e., generation, transmission and distribution service).

In addition, both the FERC and state regulators are permitted to review the books and records of any company within a holding company system.

In addition, both the FERC and state regulators are permitted to review the 15 books and records of any company within a holding company system.

The Federal EPA is proposing that owners and operators of legacy surface impoundments comply with all of the existing CCR Rule requirements applicable to inactive CCR surface impoundments at active facilities, except for the location restrictions and liner design criteria.

The Federal EPA is requiring that owners and operators of legacy surface impoundments comply with all of the existing CCR Rule requirements applicable to inactive CCR surface impoundments at active facilities, except for the location restrictions and liner design criteria.

For further information relating to the sources of revenue for the Registrants, see Note 19 - Revenues from Contracts with Customers for additional information. FINANCING General AEP subsidiaries generally use short-term debt to finance working capital needs.

For further information relating to the sources of revenue for the Registrants, see Note 20 - Revenues from Contracts with Customers for additional information. FINANCING General AEP subsidiaries generally use short-term debt to finance working capital needs.

Public Utility Subsidiaries by Jurisdiction The following table illustrates certain regulatory information with respect to the jurisdictions in which the public utility subsidiaries of AEP operate: Principal Jurisdiction AEP Utility Subsidiaries Operating in that Jurisdiction Authorized Return on Equity (a) Arkansas SWEPCo 9.50 % FERC AEPTCo - PJM 10.35 % (b) AEPTCo - SPP 10.50 % Indiana I&M 9.70 % Kentucky KPCo 9.75 % (c) Louisiana SWEPCo 9.50 % Michigan I&M 9.86 % Ohio OPCo 9.70 % Oklahoma PSO 9.30 % Tennessee KGPCo 9.50 % Texas AEP Texas 9.40 % SWEPCo 9.25 % (d) Virginia APCo 9.50 % West Virginia APCo 9.75 % WPCo 9.75 % (a) Identifies the predominant current authorized ROE, and may not include other, less significant, permitted recovery.

Public Utility Subsidiaries by Jurisdiction The following table illustrates certain regulatory information with respect to the jurisdictions in which the public utility subsidiaries of AEP operate: Principal Jurisdiction AEP Utility Subsidiaries Operating in that Jurisdiction Authorized Return on Equity (a) Arkansas SWEPCo 9.50 % FERC AEPTCo - PJM 10.35 % (b) AEPTCo - SPP 10.50 % Indiana I&M 9.85 % Kentucky KPCo 9.75 % Louisiana SWEPCo 9.50 % Michigan I&M 9.86 % Ohio OPCo 9.70 % Oklahoma PSO 9.50 % Tennessee KGPCo 9.50 % Texas AEP Texas 9.76 % SWEPCo 9.25 % (c) Virginia APCo 9.75 % West Virginia APCo 9.75 % WPCo 9.75 % (a) Identifies the predominant current authorized ROE, and may not include other, less significant, permitted recovery.

The TA has been approved by the FERC. Regional Transmission Organizations OPCo is a member of PJM, a FERC-approved RTO. RTOs operate, plan and control utility transmission assets to provide open access to such assets in a way that prevents discrimination between participants owning transmission assets and those that do not.

Most of the transmission and distribution services are sold to retail customers of AEP’s vertically integrated public utility subsidiaries in their service territories. These sales are made at rates approved by the state utility commissions of the states in which they operate, and in some instances, approved by the FERC. See Item 1.

As of December 31, 2023 and 2022, the total decommissioning trust fund balance for the Cook Plant was approximately $3.5 billion and $3 billion, respectively. The balance of funds available to eventually decommission Cook Plant will differ based on contributions and investment returns.

As of December 31, 2024 and 2023, the total decommissioning trust fund balance for the Cook Plant was approximately $4 billion and $3.5 billion, respectively. The balance of funds available to eventually decommission Cook Plant will differ based on contributions and investment returns.

KPCo reached an agreement with I&M, from the end of the lease through May 2024, to buy capacity from Rockport Plant, Unit 2 through the PCA at a rate equal to PJM’s RPM clearing price. See the “Unit Power Agreements” section of Note 16 - Related Party Transactions for additional information.

KPCo reached an agreement with I&M, from the end of the lease through May 2023, to buy capacity from Rockport Plant, Unit 2 through the PCA at a rate equal to PJM’s RPM clearing price. See the “Unit Power Agreements” section of Note 17 - Related Party Transactions for additional information.

In addition, the acceleration of AEP’s payment obligations, or the obligations of certain of its major subsidiaries, prior to maturity under any other agreement or instrument relating to debt outstanding in excess of $50 million, would cause an event of default under the credit agreements. As of December 31, 2023, AEP was in compliance with its debt covenants.

In addition, the acceleration of AEP’s payment obligations, or the obligations of certain of its major subsidiaries, prior to maturity under any other agreement or instrument relating to debt outstanding in excess of $100 million, would cause an event of default under the credit agreements. As of December 31, 2024, AEP was in compliance with its debt covenants.

(13.5%) (d) 104.1 (g) 10.4 % Energy AEP (86.5%) (d) (a) ETT is undertaking multiple projects and the completion dates will vary for those projects. ETT’s investment in completed and active projects in ERCOT is expected to be $5.0 billion by 2030. Future projects will be evaluated on a case-by-case basis.

(13.5%) (d) 148.1 (g) 10.4 % Pennsylvania AEP (86.5%) (d) (a) ETT is undertaking multiple projects and the completion dates will vary for those projects. ETT’s investment in completed and active projects in ERCOT is expected to be $5.0 billion by 2030. Future projects will be evaluated on a case-by-case basis.

AEP Texas is a member of ERCOT. 15 REGULATION OPCo provides distribution and transmission services to retail customers within its service territory at cost-based rates approved by the PUCO or by the FERC. AEP Texas sets its rates through a combination of base rate cases and interim Transmission Cost of Services (TCOS) and Distribution Cost Recovery Factor (DCRF) filings.

REGULATION OPCo provides distribution and transmission services to retail customers within its service territory at cost-based rates approved by the PUCO or by the FERC. AEP Texas sets its rates through a combination of base rate cases and interim Transmission Cost of Services (TCOS) and Distribution Cost Recovery Factor (DCRF) filings.

The total filed transmission revenue requirements, including prior year over/under-recovery of revenue and associated carrying charges were $1.8 billion, $1.7 billion and $1.4 billion for 2023, 2022 and 2021, respectively. The rates of ETT, which is located in ERCOT, are determined by the PUCT.

The total filed transmission revenue requirements, including prior year over/under-recovery of revenue and associated carrying charges were $1.9 billion, $1.8 billion and $1.7 billion for 2024, 2023 and 2022, respectively. The rates of ETT, which is located in ERCOT, are determined by the PUCT.

AEPSC, as agent for AEP’s public utility subsidiaries, performs marketing, generation dispatch, fuel procurement and power-related risk management and trading activities on behalf of each of these subsidiaries. ELECTRIC GENERATION Facilities As of December 31, 2023, AEP’s vertically integrated public utility subsidiaries owned approximately 23,000 MWs of generation.

AEPSC, as agent for AEP’s public utility subsidiaries, performs marketing, generation dispatch, fuel procurement and power-related risk management and trading activities on behalf of each of these subsidiaries. ELECTRIC GENERATION Facilities As of December 31, 2024, AEP’s vertically integrated public utility subsidiaries owned approximately 23,200 MWs of generation.

Within its Vertically Integrated Utilities segment, AEP centrally dispatches generation assets and manages its overall utility operations on an integrated basis because of the substantial impact of cost-based rates and regulatory oversight. Intersegment sales and transfers are generally based on underlying contractual arrangements and agreements.

Within its Vertically Integrated Utilities segment, AEP centrally dispatches generation assets and manages its overall utility operations on an integrated basis because of the substantial impact of cost-based rates and regulatory oversight applicable to each public utility subsidiary. Intersegment sales and transfers are generally based on underlying contractual arrangements and agreements.

AEP’s reportable segments are as follows: • Vertically Integrated Utilities • Transmission and Distribution Utilities • AEP Transmission Holdco • Generation & Marketing The remainder of AEP’s activities is presented as Corporate and Other, which is not considered a reportable segment. See Note 9 - Business Segments included in the 2023 Annual Report for additional information on AEP’s segments.

The member companies of AEP also obtain certain accounting, administrative, information systems, engineering, financial, legal, maintenance and other services at cost from a common provider, AEPSC. As of December 31, 2023, the subsidiaries of AEP had a total of 17,250 employees. Because it is a holding company rather than an operating company, AEP has no employees.

The member companies of AEP also obtain certain accounting, administrative, information systems, engineering, financial, legal, maintenance and other services at cost from a common provider, AEPSC. As of December 31, 2024, the subsidiaries of AEP had a total of 16,330 employees. Because it is a holding company rather than an operating company, AEP has no employees.

Under the TCA, a coordinating committee is charged with the responsibility of: (a) overseeing the coordinated planning of the transmission facilities of the parties to the agreement, including the performance of transmission planning studies, (b) the interaction of such subsidiaries with independent system operators and other regional bodies interested in transmission planning and (c) compliance with the terms of the OATT filed with the FERC and the rules of the FERC relating to such tariff.

Under the TCA, a coordinating committee is charged with the responsibility of: (a) overseeing the coordinated planning of the transmission facilities of the parties to the agreement, including the performance of transmission planning studies, (b) the interaction of such subsidiaries with independent system operators and other regional bodies interested in transmission planning and (c) compliance with the terms of the AEP and SPP OATTs filed with the FERC and the rules of the FERC relating to such tariffs.

See the “Nuclear Contingencies” section of Note 6 - Commitments, Guarantees and Contingencies included in the 2023 Annual Report for additional information with respect to nuclear waste and decommissioning. Low-Level Radioactive Waste The Low-Level Waste Policy Act of 1980 mandates that the responsibility for the disposal of low-level radioactive waste rests with the individual states.

See the “Nuclear Contingencies” section of Note 6 - Commitments, Guarantees and Contingencies for additional information with respect to nuclear waste and decommissioning. Low-Level Radioactive Waste The Low-Level Waste Policy Act of 1980 mandates that the responsibility for the disposal of low-level radioactive waste rests with the individual states.

In 2023, approximately 494 AEPSC employees and 317 operating company employees provided service to one or more joint ventures. 17 REGULATION The State Transcos and the Transmission Joint Ventures located outside of ERCOT establish transmission rates annually through forward-looking formula rate filings with the FERC pursuant to FERC-approved implementation protocols.

In 2024, approximately 502 AEPSC employees and 302 operating company employees provided service to one or more joint ventures. 17 REGULATION The State Transcos and the Transmission Joint Ventures located outside of ERCOT establish transmission rates annually through forward-looking formula rate filings with the FERC pursuant to FERC-approved implementation protocols.

AEP’s revolving credit agreements (which backstop the commercial paper program) include covenants and events of default typical for these types of facilities, including a maximum debt/capital test.

AEP’s revolving credit agreements (which backstop the commercial paper program) include covenants and events of default typical for these types of facilities, including a maximum debt-to-total capitalization test.

In May 2023, the Federal EPA proposed revisions to the CCR Rule to expand the scope of the rule to include inactive impoundments at inactive facilities (“legacy CCR surface impoundments”) as well as to establish requirements for currently exempt solid waste management units that involve the direct placement of CCR on the land (“CCR management units”).

In April 2024, the Federal EPA finalized revisions to the CCR Rule to expand the scope of the rule to include inactive impoundments at inactive facilities (“legacy CCR surface impoundments”) as well as to establish requirements for currently exempt solid waste management units that involve the direct placement of CCR on the land (“CCR management units”).

As of December 31, 2023, AEPSC had 6,736 employees. 1 Principal Industries Served The following table illustrates the principal industries and wholesale electric markets served by AEP’s public utility subsidiaries.

As of December 31, 2024, AEPSC had 6,237 employees. 1 Principal Industries Served The following table illustrates the principal industries and wholesale electric markets served by AEP’s public utility subsidiaries.

As of December 31, 2023, through subsidiaries, AEP owns, leases or controls 3,180 railcars, 319 barges, 4 towboats and a coal handling terminal with approximately 18 million tons of annual capacity to move and store coal for use in AEP generating facilities. AEP will procure additional railcar and barge/towboat capacity as needed based on demand.

As of December 31, 2024, through subsidiaries, AEP owns, leases or controls 2,934 railcars, 296 barges, 4 towboats and a coal handling terminal with approximately 18 million tons of annual capacity to move and store coal for use in AEP generating facilities. AEP will procure additional railcar and barge/towboat capacity as needed based on demand.

See “Financial Condition” section of Management’s Discussion and Analysis of Financial Condition and Results of Operations included in the 2023 Annual Report for additional information. AEP’s subsidiaries have also utilized, and expect to continue to utilize, additional financing arrangements, such as securitization financings and leasing arrangements.

See “Financial Condition” section of Management’s Discussion and Analysis of Financial Condition and Results of Operations for additional information. AEP’s subsidiaries have also utilized, and expect to continue to utilize, additional financing arrangements, such as securitization financings and leasing arrangements.

The following table shows the amount of natural gas delivered to the Vertically Integrated Utilities’ plants during the past three years and the average delivered price of natural gas purchased by the Vertically Integrated Utilities: 2023 2022 2021 Total natural gas delivered to the plants (in billions cubic feet) 146.0 126.0 108.0 Average delivered price per MMBtu of purchased natural gas $ 2.69 $ 6.94 $ 8.92 10 Nuclear I&M has made commitments to meet the current nuclear fuel requirements of the Cook Plant.

The following table shows the amount of natural gas delivered to the Vertically Integrated Utilities’ plants during the past three years and the average delivered price of natural gas purchased by the Vertically Integrated Utilities: 2024 2023 2022 Total natural gas delivered to the plants (in billions cubic feet) 155.0 146.0 126.0 Average delivered price per MMBtu of purchased natural gas $ 3.05 $ 2.69 $ 6.94 9 Nuclear I&M has made commitments to meet the current nuclear fuel requirements of the Cook Plant.

The following table shows the amount of coal and lignite delivered to the Vertically Integrated Utilities’ plants during the past three years and the average delivered price of coal and lignite purchased by the Vertically Integrated Utilities: 2023 2022 2021 Total coal and lignite delivered to the plants (in millions of tons) 20.9 20.4 18.2 Average cost per ton of coal and lignite delivered $ 64.31 $ 56.16 $ 50.76 The coal supplies at the Vertically Integrated Utilities plants vary from time to time depending on various factors, including, but not limited to, demand for electric power, unit outages, transportation infrastructure limitations, space limitations, coal consumption rates, labor issues, supplier outages and issues and weather conditions, all of which may interrupt or slow production, consumption or deliveries.

The following table shows the amount of coal and lignite delivered to the Vertically Integrated Utilities’ plants during the past three years and the average delivered price of coal and lignite purchased by the Vertically Integrated Utilities: 2024 2023 2022 Total coal and lignite delivered to the plants (in millions of tons) 16.5 20.9 20.4 Average cost per ton of coal and lignite delivered $ 62.05 $ 64.31 $ 56.16 The coal supplies at the Vertically Integrated Utilities plants vary from time to time depending on various factors, including, but not limited to, consumption rates driven by the demand for electric power, unit outages, transportation limitations or delays, space limitations, labor issues, supplier outages and issues and weather conditions, all of which may impact production, consumption or deliveries.

As of December 31, 2023, counterparties posted approximately $117 million in cash, cash equivalents or letters of credit with AEP for the benefit of AEP’s Generation & Marketing segment subsidiaries (while, as of that date, AEP’s Generation & Marketing segment subsidiaries posted approximately $155 million with counterparties and exchanges).

As of December 31, 2024, counterparties posted approximately $156 million in cash, cash equivalents or letters of credit with AEP for the benefit of AEP’s Generation & Marketing segment subsidiaries (while, as of that date, AEP’s Generation & Marketing segment subsidiaries posted approximately $153 million with counterparties and exchanges).

In the annual rate base filings described above, the State Transcos in aggregate filed rate base totals of $10.7 billion, $9.9 billion and $8.4 billion for 2023, 2022 and 2021, respectively.

In the annual formula rate filings described above, the State Transcos in aggregate filed formula rate base totals of $11.4 billion, $10.7 billion and $9.9 billion for 2024, 2023 and 2022, respectively.

See the “Quantitative and Qualitative Disclosures About Market Risk” section of Management’s Discussion and Analysis of Financial Condition and Results of Operations included in the 2023 Annual Report for additional information. 11 Certain Power Agreements I&M A UPA between AEGCo and I&M (the I&M Power Agreement) provides for the sale by AEGCo to I&M of all the power (and the energy associated therewith) available to AEGCo at the Rockport Plant unless it is sold to another utility.

See the “Quantitative and Qualitative Disclosures About Market Risk” section of Management’s Discussion and Analysis of Financial Condition and Results of Operations for additional information. 10 Certain Power Agreements I&M A UPA between AEGCo and I&M (the I&M Power Agreement) provides for the sale by AEGCo to I&M of all the energy and capacity available to AEGCo at the Rockport Plant unless it is sold to another utility.

As of December 31, 2023, counterparties posted approximately $36 million in cash, cash equivalents or letters of credit with AEPSC for the benefit of AEP’s public utility subsidiaries (while, as of that date, AEP’s public utility subsidiaries posted approximately $200 million with counterparties and exchanges).

As of December 31, 2024, counterparties posted approximately $16 million in cash, cash equivalents or letters of credit with AEPSC for the benefit of AEP’s public utility subsidiaries (while, as of that date, AEP’s public utility subsidiaries posted approximately $201 million with counterparties and exchanges).

VERTICALLY INTEGRATED UTILITIES GENERAL AEP’s vertically integrated utility operations are engaged in the generation, transmission and distribution of electricity for sale to retail and wholesale customers through assets owned and operated by AEGCo, APCo, I&M, KGPCo, KPCo, PSO, SWEPCo and WPCo.

Conversely, unusually extreme weather conditions could increase AEP’s results of operations. VERTICALLY INTEGRATED UTILITIES GENERAL AEP’s vertically integrated utility operations are engaged in the generation, transmission and distribution of electricity for sale to retail and wholesale customers through assets owned and operated by AEGCo, APCo, I&M, KGPCo, KPCo, PSO, SWEPCo and WPCo.

In April 2022, the PUCT denied the motion for rehearing. In May 2022, SWEPCo filed a petition for review with the Texas District Court seeking a judicial review of the several errors challenged in the PUCT’s final order.

In May 2022, SWEPCo filed a petition for review with the Texas District Court seeking a judicial review of the several errors challenged in the PUCT’s final order.

Actual ROE varies from authorized ROE. (b) In December 2022, the FERC issued an order removing the 50 basis point RTO incentive from OHTCo transmission formula rates effective February 2022, reducing OHTCo’s authorized ROE to 9.85%. (c) The KPSC issued an order approving a 9.75% ROE, effective January 2024.

All other joint ventures in the table above are not consolidated by AEP. AEP’s joint ventures do not have employees. Business services for the joint ventures are provided by AEPSC and other AEP subsidiaries and the joint venture partners.

AEP’s joint ventures do not have employees. Business services for the joint ventures are provided by AEPSC and other AEP subsidiaries and the joint venture partners.

(50%) 158.0 12.8 % BHE (25%) AEP (25%) Pioneer Indiana 2018 Duke Energy (50%) 191.0 10.52 % (b) AEP (50%) Transource Missouri 2016 Evergy, Inc. (13.5%) (d) 310.1 11.1 % (c) Missouri AEP (86.5%) (d) Transource West 2019 Evergy, Inc. (13.5%) (d) 84.3 10.5 % West Virginia Virginia AEP (86.5%) (d) Transource Maryland 2027 Evergy, Inc.

(50%) 158.0 12.8 % BHE (25%) AEP (25%) Pioneer Indiana 2018 John Lainge (50%) 191.0 10.48 % (b) AEP (50%) Transource Missouri 2016 Evergy, Inc. (13.5%) (d) 310.1 11.1 % (c) Missouri AEP (86.5%) (d) Transource West 2019 Evergy, Inc. (13.5%) (d) 84.3 10.5 % West Virginia Virginia AEP (86.5%) (d) Transource Maryland (e) Evergy, Inc.

While inventory targets vary by plant and are changed as necessary, the current coal inventory target for the Vertically Integrated Utilities is approximately 34 days of full load burn. Natural Gas The Vertically Integrated Utilities consumed approximately 146 billion cubic feet of natural gas during 2023 for generating power. This represents an increase of 15.8% from 2022.

While inventory targets vary by plant and are changed as necessary, the current coal inventory target for the Vertically Integrated Utilities is approximately 35 days of full load burn. Natural Gas The Vertically Integrated Utilities consumed approximately 155 billion cubic feet of natural gas during 2024 for generating power. This represents an increase of 6.7% from 2023.

Fuel Supply The following table shows the owned and leased generation sources by type (including wind purchase agreements), on an actual net generation (MWhs) basis, used by the Vertically Integrated Utilities: 2023 2022 2021 Coal and Lignite 37% 43% 50% Nuclear 22% 21% 22% Natural Gas 22% 19% 16% Renewables 19% 17% 12% An increase/decrease in one or more generation types relative to previous years reflects the addition of renewable resources, retirement of traditional fossil fuel units and price changes in one or more fuel commodity sources relative to the pricing of other fuel commodity sources.

Fuel Supply The following table shows the owned and leased generation sources by type (including wind purchase agreements), on an actual net generation (MWhs) basis, used by the Vertically Integrated Utilities: 2024 2023 2022 Coal and Lignite 40% 37% 43% Nuclear 22% 22% 21% Natural Gas 22% 22% 19% Renewables 16% 19% 17% 8 An increase/decrease in one or more generation types relative to previous years reflects changes in resource mix and price changes in one or more fuel commodity sources relative to the pricing of other fuel commodity sources.

The proposal establishes accelerated compliance deadlines for legacy surface impoundments to meet regulatory requirements, including a requirement to initiate closure within one year after the effective date of the final rule. The Federal EPA's proposal would require evaluations to be completed at both active facilities and inactive facilities with one or more legacy surface impoundments.

The rule establishes compliance deadlines for legacy surface impoundments to meet regulatory requirements, including a requirement to initiate closure within five years after the effective date of the final rule. The rule requires evaluations to be completed at both active facilities and inactive facilities with one or more legacy surface impoundments.

West Virginia APCo and WPCo provide retail electric service at bundled rates approved by the WVPSC, with rates set on a combined cost-of-service basis. West Virginia generally allows for timely recovery of fuel costs, purchased power costs and transmission expenses through the ENEC which trues-up to actual expenses.

West Virginia APCo and WPCo provide retail electric service at bundled rates approved by the WVPSC with rates set on a combined APCo and WPCo cost-of-service basis. West Virginia generally allows for timely recovery of fuel expenses, purchased power expenses and transmission expenses through a single surcharge mechanism.

(13.5%) (d) 27.6 (e) 10.4 % Maryland AEP (86.5%) (d) Transource Pennsylvania 2027 Evergy, Inc. (13.5%) (d) 243.6 (e) 10.4 % Pennsylvania AEP (86.5%) (d) Transource Oklahoma 2026 Evergy, Inc. (13.5%) (d) 127.9 (f) 10.3 % Oklahoma AEP (86.5%) (d) Transource Pennsylvania 2027 Evergy, Inc.

(13.5%) (d) 27.6 (e) 10.4 % Maryland AEP (86.5%) (d) Transource Pennsylvania (e) Evergy, Inc. (13.5%) (d) 243.6 (e) 10.4 % Pennsylvania AEP (86.5%) (d) Transource Oklahoma 2025 Evergy, Inc. (13.5%) (d) 131.2 (f) 10.3 % Oklahoma AEP (86.5%) (d) Transource Pennsylvania 2027 Evergy, Inc.

See Note 4 - Rate Matters included in the 2023 Annual Report for more information regarding pending rate matters. Indiana I&M provides retail electric service in Indiana at bundled rates approved by the IURC, with rates set on a forecasted cost-of-service basis. Indiana provides for timely fuel and purchased power cost recovery through respective fuel and purchased power recovery mechanisms.

See Note 4 - Rate Matters for more information regarding pending rate matters. Arkansas SWEPCo provides retail electric service in Arkansas at bundled rates approved by the APSC, with rates set on a historical cost-of-service basis and formula rates. Arkansas provides for timely fuel and purchased power cost recovery through respective annual fuel and purchased power recovery mechanisms.

The use and the recovery of costs associated with the transmission assets of the AEP vertically integrated public utility subsidiaries are subject to the rules, principles, protocols and agreements in place with PJM and SPP, and as approved by the FERC. See Item 1. Business – Vertically Integrated Utilities – Regulation – FERC.

The FERC regulates and approves the rates for both wholesale transmission transactions and wholesale generation contracts. The use and the recovery of costs associated with the transmission assets of the AEP vertically integrated public utility subsidiaries are subject to the rules, principles, protocols and agreements in place with PJM and SPP, and as approved by the FERC. See Item 1.

Compensation and Benefits AEP is committed to the well-being of our employees and we offer programs to foster employee financial security; physical and emotional health; and social connectedness. We provide market competitive compensation and benefits that support our employees and their families to help them thrive at home and work.

Compensation and Benefits AEP is committed to the well-being of our employees, and we offer programs to foster employee financial security, physical and emotional health, and social connectedness. We provide market-competitive compensation and benefits, including medical and dental coverage, life insurance, and well-being programs that support our employees and their families.

As discussed below, some transmission services also are separately sold to nonaffiliated companies. Other than AEGCo, AEP’s vertically integrated public utility subsidiaries hold franchises or other rights to provide electric service in various municipalities and regions in their service areas. In some cases, these franchises provide the utility with the exclusive right to provide electric service within a specific territory.

Business – Vertically Integrated Utilities – Regulation – FERC. As discussed below, some transmission services also are separately sold to nonaffiliated companies. Other than AEGCo, AEP’s vertically integrated public utility subsidiaries hold franchises or other rights to provide electric service in various municipalities and regions in their service areas.

These transactions are executed with numerous counterparties or on exchanges. The Generation & Marketing segment also includes AGR which holds the rights to Cardinal Plant Unit 1’s power and capacity through 2028 through a PPA with a nonaffiliated electric cooperative. COMPETITION The AEP Generation & Marketing segment subsidiaries face competition for the sale of available power, capacity and ancillary services.

This segment also includes rights to Cardinal Plant Unit 1’s power and capacity through 2028 through a PPA with a nonaffiliated electric cooperative. COMPETITION The AEP Generation & Marketing segment subsidiaries face competition for the sale of available power, capacity and ancillary services.

AEP’s overall 2023 fossil fuel costs for the Vertically Integrated Utilities decreased 28.3% on a dollar per MMBtu basis from 2022. 9 Coal and Lignite AEP’s Vertically Integrated Utilities procure coal and lignite under a combination of purchasing arrangements including long-term contracts, affiliate operations and spot agreements with various producers, marketers and coal trading firms.

AEP’s overall 2024 fossil fuel costs for the Vertically Integrated Utilities increased 3.2% on a dollar per MMBtu basis from 2023. Coal and Lignite AEP’s Vertically Integrated Utilities procure coal under a combination of purchasing arrangements, including long-term contracts, and spot agreements with various producers and marketers. Coal consumption increased 12.7% in 2024 from 2023.

As of December 31, 2023, the Vertically Integrated Utilities’ coal inventory was approximately 82 days of full load burn. Inventory levels grew significantly in 2023 due to mild weather conditions, lower demand for electric power and a decline in natural gas prices. Management expects inventory levels to remain elevated in 2024 due to many of these same factors.

As of December 31, 2024 and 2023, the Vertically Integrated Utilities’ coal inventory was approximately 71 days and 82 days of full load burn, respectively. Inventory levels remained high in 2024 due to mild weather conditions and continued low natural gas prices. Management expects inventory levels to remain elevated in 2025 due to many of these same factors.

We are committed to taking bold steps to fundamentally embed layers of protection in the work we do. This includes focusing our efforts to prevent serious injuries and fatalities, strengthening pre-job briefing effectiveness, learning from significant incidents, providing appropriate training and education and improving proactive safety initiatives and data analysis to identify and address potential performance gaps.

This includes focusing our efforts to prevent serious injuries and fatalities, strengthening pre-job briefing effectiveness, learning from safety incidents, providing appropriate training and education and improving proactive safety initiatives and data analysis to identify and address potential performance gaps.

Ulrich Executive Vice President and Chief Human Resources Officer Age 53 Executive Vice President since January 2023. Chief Human Resources Officer since August 2021. Senior Vice President from August 2021 to December 2022. Chief Human Resources Officer of Flex, LTD from May 2019 to July 2021.

Senior Vice President from August 2021 to December 2022. Chief Human Resources Officer of Flex, LTD from May 2019 to July 2021. 20

In March 2023, the Federal EPA proposed further revisions to the ELG rule which, if finalized, would establish a zero discharge standard for FGD wastewater and bottom ash transport water, and more stringent discharge limits for combustion residual leachate.

In April 2024, the Federal EPA finalized further revisions to the ELG rule that establish a zero liquid discharge standard for FGD wastewater, bottom ash transport water, and managed combustion residual leachate, as well as more stringent discharge limits for unmanaged combustion residual leachate.

See “2023 Kentucky Base Rate and Securitization Case” section of Note 4 for additional information. (d) In February 2022, as part of the 2020 Texas Base Rate Case, SWEPCo filed a motion for rehearing with the PUCT alleging several errors in the final order, which included a challenge of the approved ROE.

(c) In February 2022, as part of the 2020 Texas Base Rate Case, SWEPCo filed a motion for rehearing with the PUCT alleging several errors in the final order, which included a challenge of the approved ROE. In April 2022, the PUCT denied the motion for rehearing.

In 2023, owned and PPA coal capacity represented 42% of AEP’s generating capacity compared with 70% in 2005. 4 The graph below summarizes AEP’s generating capacity by resource type for the years 1999, 2005 and 2023: (a) Energy Efficiency/Demand Response represents avoided capacity rather than physical assets.

The graph below summarizes AEP’s generating capacity by resource type for the years 1999, 2005 and 2024: (a) Energy Efficiency/Demand Response represents avoided capacity rather than physical assets.

From a natural gas transportation perspective, the Vertically Integrated Utilities utilize firm and interruptible transportation capacity. AEP’s natural gas supply, transportation and storage transactions are competitively bid and are based on current market prices.

From a natural gas transportation perspective, the Vertically Integrated Utilities utilize firm and interruptible transportation capacity. Furthermore, SWEPCo and PSO utilize firm natural gas storage, which supports price stability and provides additional surety of natural gas supply. AEP’s natural gas supply, transportation and storage transactions are competitively bid and are based on applicable market prices.

Smyth Executive Vice President - Grid Solutions & Government Affairs Age 47 Executive Vice President - Grid Solutions & Government Affairs since April 2023. Senior Vice President - Grid Solutions from January 2021 to April 2023. Senior Vice President - Transmission Ventures, Strategy & Policy from October 2018 to December 2020. Phillip R.

Senior Vice President - Grid Solutions from January 2021 to April 2023. Senior Vice President - Transmission Ventures, Strategy & Policy from October 2018 to December 2020. Phillip R. Ulrich Executive Vice President and Chief Human Resources Officer Age 54 Executive Vice President since January 2023. Chief Human Resources Officer since August 2021.

AEP’s vertically integrated public utility subsidiaries are also subject to regulation by the FERC under the Federal Power Act with respect to wholesale power and transmission service transactions. I&M is subject to regulation by the NRC under the Atomic Energy Act of 1954, as amended, with respect to the operation of the Cook Plant.

I&M is subject to regulation by the NRC under the Atomic Energy Act of 1954, as amended, with respect to the operation of the Cook Plant. AEP and its vertically integrated public utility subsidiaries are also subject to the regulatory provisions of, much of the Energy Policy Act of 2005, which is administered by the FERC.

The estimated cost of decommissioning and disposal of low-level radioactive waste for the Cook Plant was $2.2 billion in 2021 non-discounted dollars, with additional ongoing estimated costs of $7 million per year for post decommissioning storage of SNF and an eventual estimated cost of $33 million for the subsequent decommissioning of the spent fuel storage facility, also in 2021 non-discounted dollars.

According to that study, stated in 2024 undiscounted dollars, the estimated cost of decommissioning and disposal of low-level radioactive waste was $2.4 billion, with additional ongoing costs of $7 million per year for post decommissioning storage of SNF and an eventual cost of $45 million for the subsequent decommissioning of the SNF storage facility.

Information related to AEP subsidiary operating companies as of December 31, 2023 is shown in the table below: AEP Texas AEPTCo APCo I&M KGPCo (a) KPCo OPCo (b) PSO SWEPCo WPCo State of Incorporation Delaware, 1925 Delaware, 2006 Virginia, 1926 Indiana, 1907 Virginia, 1917 Kentucky, 1919 Ohio, 1907 Oklahoma, 1913 Delaware, 1912 West Virginia, 1883 AEP Reportable Segment Transmission and Distribution Utilities AEP Transmission Holdco Vertically Integrated Utilities Vertically Integrated Utilities Vertically Integrated Utilities Vertically Integrated Utilities Transmission and Distribution Utilities Vertically Integrated Utilities Vertically Integrated Utilities Vertically Integrated Utilities RTO Affiliation ERCOT (c) PJM PJM PJM PJM PJM SPP SPP PJM Approximate Number of Retail Customers 1,111,000 (c) 967,000 613,000 49,000 163,000 1,527,000 578,000 548,000 41,000 Number of Employees 1,646 (c) 1,679 2,110 56 284 1,752 1,062 1,344 230 Overhead Circuit Miles of Transmission and Distribution Lines 46,673 4,188 51,558 20,584 1,405 11,210 44,519 18,156 26,233 1,722 (a) KGPCo does not own any generating facilities and purchases electric power from APCo for distribution to its customers.

Summary information related to AEP subsidiary operating companies as of December 31, 2024 is shown in the table below: AEP Texas AEPTCo APCo I&M KGPCo (a) KPCo OPCo (b) PSO SWEPCo WPCo State of Incorporation Delaware, 1925 Delaware, 2006 Virginia, 1926 Indiana, 1907 Virginia, 1917 Kentucky, 1919 Ohio, 1907 Oklahoma, 1913 Delaware, 1912 West Virginia, 1883 AEP Reportable Segment Transmission and Distribution Utilities AEP Transmission Holdco Vertically Integrated Utilities Vertically Integrated Utilities Vertically Integrated Utilities Vertically Integrated Utilities Transmission and Distribution Utilities Vertically Integrated Utilities Vertically Integrated Utilities Vertically Integrated Utilities RTO Affiliation ERCOT (c) PJM PJM PJM PJM PJM SPP SPP PJM Approximate Number of Retail Customers 1,122,000 (c) 969,000 617,000 50,000 163,000 1,539,000 584,000 555,000 41,000 Number of Employees 1,598 (c) 1,613 2,069 47 279 1,594 1,044 1,314 229 (a) KGPCo does not own any generating facilities and purchases electric power from APCo for distribution to its customers.

AEP’s Vertically Integrated Utilities operations no longer use lignite as a fuel source after the retirement of the Pirkey Power Plant. Management projects that the Vertically Integrated Utilities will be able to secure and transport coal of adequate quality and quantities to operate their coal fired units.

Management projects that the Vertically Integrated Utilities will be able to secure and transport coal of adequate quality and quantities to operate their coal fired units.

Management believes its experience providing robust energy efficiency programs in several states positions AEP to be a cost-effective provider of these programs as states develop their implementation plans. 5 Corporate Governance In response to environmental issues and in connection with its assessment of AEP’s strategic plan, the Board of Directors continually reviews the risks posed by new environmental rules and requirements that could alter the retirement date of coal-fired generation assets.

Corporate Governance In response to environmental issues and in connection with its assessment of AEP’s strategic plan, the Board of Directors continually reviews the risks posed by new environmental rules and requirements that could alter the retirement date of coal-fired generation assets.

ETT sets its rates through a combination of base rate cases and interim Transmission Cost of Services (TCOS) filings. ETT may file interim TCOS filings semi-annually to update its rates to reflect changes in its net invested capital.

ETT sets its rates through a combination of base rate cases and interim Transmission Cost of Services (TCOS) filings.

In October 2020, Transource was awarded the Sooner-Wekiwa project by SPP and the project was assigned to Transource Kansas. In November 2020, Transource Kansas was renamed Transource Oklahoma. The project is expected to go in-service in 2026. (g) In October 2022, Transource Energy’s North Delta A proposal was awarded by the New Jersey Board of Public Utilities.

The project is expected to go in-service in November 2025. (g) In October 2022, Transource Energy’s North Delta A proposal was awarded by the New Jersey Board of Public Utilities. In December 2023, the North Delta project was expanded with additional scope and approved by the PJM Board of Managers.

Sustained low natural gas and power prices, low market volatility and maturing competitive environments can adversely affect this business. Counterparty Risk Management Counterparties and exchanges may require cash or cash related instruments to be deposited on these transactions as margin against open positions.

Counterparty Risk Management Counterparties and exchanges may require cash or cash related instruments to be deposited on these transactions as margin against open positions.

Oklahoma PSO provides retail electric service in Oklahoma at bundled rates approved by the OCC. PSO’s rates are set on a cost-of-service basis. Fuel and purchased energy costs are recovered or refunded through a fuel adjustment clause. Virginia APCo currently provides retail electric service in Virginia at unbundled generation and distribution rates approved by the Virginia SCC.

Michigan generally allows for timely recovery of fuel expenses, transmission expenses and purchased power expenses through a single surcharge mechanism. Oklahoma PSO provides retail electric service in Oklahoma at bundled rates approved by the OCC. PSO’s rates are set on a historical cost-of-service basis. Fuel and purchased energy costs are recovered through a fuel adjustment clause.

President and Chief Operating Officer of AEP Energy Supply LLC since July 2021. President of AEP Energy, Inc. since May 2017. Therace M. Risch Executive Vice President and Chief Information & Technology Officer Age 50 Executive Vice President since July 2021. Chief Information & Technology Officer since May 2020. Senior Vice President from April 2020 to July 2021.

Senior Vice President-Controller and Chief Accounting Officer of Sempra from 2012 to 2018. Therace M. Risch Executive Vice President and Chief Information & Technology Officer Age 51 Executive Vice President since July 2021. Chief Information & Technology Officer since April 2020. Senior Vice President from April 2020 to July 2021.

Business – Vertically Integrated Utilities – Competition. 12 Transmission Agreement APCo, I&M, KGPCo, KPCo and WPCo own and operate transmission facilities that are used to provide transmission service under the PJM OATT and are parties to the TA.

In general, the operating companies consider their franchises to be adequate for the conduct of their business. 11 Transmission Agreement APCo, I&M, KGPCo, KPCo and WPCo own and operate transmission facilities that are used to provide transmission service under the PJM OATT and are parties to the TA.

Management is evaluating the proposed rule. Other Environmental Issues and Matters The Comprehensive Environmental Response, Compensation and Liability Act of 1980 imposes costs for environmental remediation upon owners and previous owners of sites, as well as transporters and generators of hazardous material disposed of at such sites.

If AEP is unable to recover the costs of its investments, it would reduce future net income and cash flows and impact financial condition. 4 Other Environmental Issues and Matters The Comprehensive Environmental Response, Compensation and Liability Act of 1980 imposes costs for environmental remediation upon owners and previous owners of sites, as well as transporters and generators of hazardous material disposed of at such sites.

Several of AEP’s natural gas-fired power plants are connected to at least two pipelines which allow greater access to competitive supplies and improve delivery reliability. From a natural gas supply perspective, the Vertically Integrated Utilities utilize daily spot market purchases, as well as longer-term arrangements including monthly baseload, forward month baseload, seasonal baseload and long-term firm purchases.

Several of AEP’s natural gas-fired units are connected to at least two pipelines, which allows greater access to competitive supplies and improves delivery reliability. From a natural gas supply perspective, the Vertically Integrated Utilities secure forward month, fixed price baseload supply, prompt month baseload supply, and pursue daily spot market purchases or sales (to balance daily positions).

Management is currently evaluating applying for license extensions for both units. Nuclear Waste and Decommissioning As the owner of the Cook Plant, I&M has a significant future financial commitment to dispose of SNF and decommission and decontaminate the plant safely. The cost to decommission a nuclear plant is affected by NRC regulations and the SNF disposal program.

Management has started the application process for license extensions for both units that would extend Unit 1 and Unit 2 to 2054 and 2057, respectively. Nuclear Waste and Decommissioning As the owner of the Cook Plant, I&M has a significant future financial commitment to dispose of SNF and decommission and decontaminate the plant safely.

One common industry safety metric utilized by AEP to track incidents is the Days Away/Restricted or Transferred (DART) rate. A DART event is an event that results in one or more lost days, one or more restricted days, or results in an employee transferring to a different job within the company.

Safety Metric 2024 2023 DART 0.556 0.384 TRIR 0.913 0.690 AEP’s employee Days Away, Restricted and Transferred (DART) rate and Total Recordable Incident Rate (TRIR) increased in 2024. A DART event is an event that results in one or more lost days, one or more restricted days, or results in an employee transferring to a different job within the company.

Certain public utility subsidiaries of AEP also sell accounts receivable to provide liquidity. See “Financial Condition” section of Management’s Discussion and Analysis of Financial Condition and Results of Operations included in the 2023 Annual Report for additional information.

Certain public utility subsidiaries of AEP also sell accounts receivable to provide liquidity. Sources of long-term funding include issuance of long-term debt, long-term asset securitizations, leasing agreements, hybrid securities or common stock. See “Financial Condition” section of Management’s Discussion and Analysis of Financial Condition and Results of Operations for additional information.

The DART rate is a mathematical calculation (number of DART events multiplied by 200,000 and divided by total YTD hours worked) that describes the number of injuries per 100 full-time employees. In 2023, AEP’s employee DART rate performance improved to 0.384 as compared to 0.424 in 2022. Culture and Inclusion Culture serves as the foundation for success at AEP.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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2023 filing

2024 filing

Biggest changeIf AEP’s ability to access capital becomes significantly constrained, AEP’s interest costs will likely increase and that could reduce future net income and cash flows and negatively impact financial condition. AEP and AEPTCo have no income or cash flow apart from dividends paid or other payments due from their subsidiaries.

Biggest changeAEP’s business is capital intensive, and AEP is dependent upon the ability to access capital at rates and on terms management determines to be attractive. If AEP’s ability to access capital becomes significantly constrained, AEP’s interest costs will likely increase and that could reduce future net income and cash flows and negatively impact financial condition.

Delays in obtaining permits, challenges in securing suitable land for the siting, shortages in materials and qualified labor, levels of public support or opposition, suppliers and contractors not performing as expected or required under their contracts and/or experiencing financial problems that inhibit their ability to fulfill their obligations under contracts, changes in the scope and timing of projects, poor quality initial cost estimates from contractors, the inability to raise capital on favorable terms, changes in commodity prices affecting revenue, fuel costs, or materials costs, downward changes in the economy, changes in law or regulation, including environmental compliance requirements, further direct and indirect trade and tariff issues, supply chain delays or disruptions, and other events beyond AEP’s control may occur that may materially affect the schedule, cost, and performance of needed acquisitions or construction projects.

The regulated utility businesses, and the energy industry as a whole, have experienced a period of rising costs and investments and an upward trend in spending, especially with respect to infrastructure investments, which is likely to continue in the foreseeable future and could result in more frequent rate cases and requests for, and the continuation of, cost recovery mechanisms, all of which could face resistance from customers and other stakeholders especially in a rising cost environment, whether due to inflation or high fuel prices or otherwise, and/or in periods of economic decline or hardship.

The regulated utility businesses, and the energy industry as a whole, have experienced a period of rising costs and investments and an upward trend in spending, especially with respect to infrastructure investments, which is likely to continue in the foreseeable future and could result in more frequent rate cases and requests for, and the continuation of, cost recovery mechanisms, all of which could face resistance from customers and other stakeholders especially in a rising cost environment, whether due to inflation, tariffs, high fuel prices or otherwise, and/or in periods of economic decline or hardship.

In the ordinary course of business, we rely on information technology systems, including the internet and third-party hosted services, to support a variety of business processes and activities and to store sensitive data, including (i) intellectual property, (ii) proprietary business information, (iii) personally identifiable information of our customers, employees, retirees and shareholders and (iv) data with respect to invoicing and the collection of payments, accounting, procurement, and supply chain activities.

In the ordinary course of business, we rely on information technology systems, including the internet and third-party hosted services, to support a variety of business processes and activities and to store sensitive data, including (i) intellectual property, (ii) proprietary business information, (iii) personally identifiable information of our customers, employees, retirees and shareholders and (iv) data with respect to invoicing and the collection of 25 payments, accounting, procurement and supply chain activities.

Existing, new or changed rules of these RTOs could result in significant additional fees and increased 23 costs to participate in those structures, including the cost of transmission facilities built by others due to changes in transmission rate design. In addition, these RTOs may assess costs resulting from improved transmission reliability, reduced transmission congestion and firm transmission rights.

Existing, new or changed rules of these RTOs could result in significant additional fees and increased costs to participate in those structures, including the cost of transmission facilities built by others due to changes in transmission rate design. In addition, these RTOs may assess costs resulting from improved transmission reliability, reduced transmission congestion and firm transmission rights.

Based on current environmental programs remaining in effect, AEP has sufficient emission allowances available through either EPA original issuance or market purchases to cover projected needs for the next two years and beyond. Additional costs may be incurred either to acquire additional allowances or to achieve further reductions in emissions.

Based on current environmental programs remaining in effect, AEP has sufficient emission 28 allowances available through either EPA original issuance or market purchases to cover projected needs for the next two years and beyond. Additional costs may be incurred either to acquire additional allowances or to achieve further reductions in emissions.

Management is unable to predict the course or outcome of these or any future litigation or investigations or their impact, if any, on future results of operations, financial condition and cash flows. 30 Hazards associated with high-voltage electricity transmission may result in suspension of AEP’s operations or the imposition of civil or criminal penalties.

Management is unable to predict the course or outcome of these or any future litigation or investigations or their impact, if any, on future results of operations, financial condition and cash flows. Hazards associated with high-voltage electricity transmission may result in suspension of AEP’s operations or the imposition of civil or criminal penalties.

As a result, prevailing economic conditions may reduce future net income and cash flows and negatively impact financial condition. 27 Volatility in the securities markets, interest rates, and other factors could substantially increase defined benefit pension and other postretirement plan costs and the costs of nuclear decommissioning.

As a result, prevailing economic conditions may reduce future net income and cash flows and negatively impact financial condition. Volatility in the securities markets, interest rates, and other factors could substantially increase defined benefit pension and other postretirement plan costs and the costs of nuclear decommissioning.

Changes in regulatory policies and advances in batteries or energy storage, wind turbines, small modular reactors and photovoltaic solar cells are reducing costs of new technology to levels that are making them competitive with some central station electricity production and delivery.

Changes in regulatory policies and advances in batteries or energy storage, wind turbines, small 22 modular reactors and photovoltaic solar cells are reducing costs of new technology to levels that are making them competitive with some central station electricity production and delivery.

The challenges include 28 potential higher rates of existing employee departures, lack of resources, loss of knowledge and a lengthy time period associated with skill development. In this case, costs, including costs for contractors to replace employees, productivity costs and safety costs, may rise.

The challenges include potential higher rates of existing employee departures, lack of resources, loss of knowledge and a lengthy time period associated with skill development. In this case, costs, including costs for contractors to replace employees, productivity costs and safety costs, may rise.

Operating these facilities involves many risks, including: • Operator error and breakdown or failure of equipment or processes. • Operating limitations that may be imposed by environmental or other regulatory requirements. • Labor disputes. • Compliance with mandatory reliability standards, including mandatory cybersecurity standards. • Information technology failure that impairs AEP’s information technology infrastructure or disrupts normal business operations. • Information technology failure that affects AEP’s ability to access customer information or causes loss of confidential or proprietary data that materially and adversely affects AEP’s reputation or exposes AEP to legal claims. • Supply chain disruptions and inflation. • Fuel or water supply interruptions caused by transportation constraints, adverse weather such as drought, non-performance by suppliers and other factors. • Catastrophic events such as fires, earthquakes, explosions, hurricanes, tornadoes, ice storms, terrorism (including cyber-terrorism), floods or other similar occurrences. • Fuel costs and related requirements triggered by financial stress in the coal industry.

Operating these facilities involves many risks, including: • Operator error and breakdown or failure of equipment or processes. • Operating limitations that may be imposed by environmental or other regulatory requirements. • Labor disputes. • Compliance with mandatory reliability standards, including mandatory cybersecurity standards. • Information technology failure, including failure of artificial intelligence technology, that impairs AEP’s information technology infrastructure or disrupts normal business operations. • Information technology failure that affects AEP’s ability to access customer information or causes loss of confidential or proprietary data that materially and adversely affects AEP’s reputation or exposes AEP to legal claims. • Supply chain disruptions and inflation. 24 • Fuel or water supply interruptions caused by transportation constraints, adverse weather such as drought, non-performance by suppliers and other factors. • Catastrophic events such as fires, earthquakes, explosions, hurricanes, tornadoes, ice storms, terrorism (including cyber-terrorism), floods or other similar occurrences. • Fuel costs and related requirements triggered by financial stress in the coal industry.

The rate of return on assets held in those trusts can significantly impact both the costs of decommissioning and the funding requirements for the trusts. Supply chain disruptions and inflation could negatively impact our operations and corporate strategy.

The rate of return on assets held in those trusts can significantly impact both the costs of decommissioning and the funding requirements for the trusts. Supply chain disruptions, tariffs and inflation could negatively impact our operations and corporate strategy.

Any regulatory action or litigation outcome that triggers a reversal of a regulatory asset or deferred cost generally results in an impairment to the balance sheet and a charge to the income statement of the company involved.

Any legislation, regulatory action or litigation outcome that triggers a reversal of a regulatory asset or deferred cost generally results in an impairment to the balance sheet and a charge to the income statement of the company involved.

The hazards can cause personal injury and loss of life, severe damage to or destruction of property and equipment and environmental damage, and may result in suspension of operations and the imposition of civil or criminal penalties.

The hazards can cause personal injury and loss of life, severe damage to or destruction of property and equipment and environmental 30 damage, and may result in suspension of operations and the imposition of civil or criminal penalties.

(Applies to all Registrants) AEP’s business plan calls for extensive investment in capital improvements and additions, including the construction of additional transmission and renewable generation facilities, modernizing existing infrastructure, installation of environmental upgrades and retrofits as well as other initiatives. AEP’s public utility subsidiaries currently provide service at rates approved by one or more regulatory commissions.

(Applies to all Registrants) AEP’s business plan calls for extensive investment in capital improvements and additions, including the construction or acquisition of additional transmission and generation facilities, modernizing existing infrastructure, installation of environmental upgrades and retrofits as well as other initiatives. AEP’s public utility subsidiaries currently provide service at rates approved by one or more regulatory commissions.

These developments can challenge AEP’s competitive ability to maintain relatively low cost, efficient and reliable operations, to establish fair regulatory mechanisms and 22 to provide cost-effective programs and services to customers.

These developments can challenge AEP’s competitive ability to maintain relatively low cost, efficient and reliable operations, to establish fair regulatory mechanisms and to provide cost-effective programs and services to customers.

AEP is exposed to the risk that counterparties that owe AEP 33 money or the delivery of a commodity, including power, could breach their obligations.

AEP is exposed to the risk that counterparties that owe AEP money or the delivery of a commodity, including power, could breach their obligations.

The complaints seek monetary damages among other forms of relief. The litigation has been consolidated into a multi-district litigation (MDL) proceeding in Texas state court. The judge overseeing the MDL issued an initial case management order and stayed all proceedings and discovery.

(Applies to AEP and I&M) I&M owns the Cook Plant, which consists of two nuclear generating units for a rated capacity of 2,296 MWs, or about a tenth of the regulated generating capacity in the AEP System as of December 31, 2023.

Significant increases in costs could increase financing needs and otherwise adversely affect AEP’s business, financial position, results of operation, or cash flows. See Note 4 – Rate Matters included in the 2023 Annual Report for additional information. 21 AEP’s transmission investment strategy and execution are dependent on federal and state regulatory policy.

Significant 21 increases in costs could increase financing needs and otherwise adversely affect AEP’s business, financial position, results of operation or cash flows. See Note 4 – Rate Matters for additional information. AEP’s transmission investment strategy and execution are dependent on federal and state regulatory policy.

Management expects that these affiliates will continue to be AEPTCo’s principal transmission service customers for the foreseeable future. For the year ended December 31, 2023, AEP affiliates were responsible for approximately 79% of the consolidated transmission revenues of AEPTCo.

Management expects that these affiliates will continue to be AEPTCo’s principal transmission service customers for the foreseeable future. For the year ended December 31, 2024, AEP affiliates were responsible for approximately 80% of the consolidated transmission revenues of AEPTCo.

In 2023, AEP Texas’ two largest REPs accounted for 41% of its operating revenue. Any delay or default in payment by REPs could adversely affect cash flows, financial condition and results of operations.

In 2024, AEP Texas’ two largest REPs accounted for 40% of its operating revenue. Any delay or default in payment by REPs could adversely affect cash flows, financial condition and results of operations.

(Applies to AEP and AEP Texas) AEP Texas collects receivables from the distribution of electricity from REPs that supply the electricity it distributes to its customers. As of December 31, 2023, AEP Texas did business with approximately 124 REPs.

(Applies to AEP and AEP Texas) AEP Texas collects receivables from the distribution of electricity from REPs that supply the electricity it distributes to its customers. As of December 31, 2024, AEP Texas did business with approximately 135 REPs.

AEP may also face increased litigation risks related to disclosures made pursuant to the rule if finalized as proposed. In addition, enhanced climate disclosure requirements could accelerate the trend of certain stakeholders and lenders restricting or seeking more stringent conditions with respect to their investments in certain carbon-intensive sectors.

AEP may also face increased litigation risks related to disclosures made pursuant to any rules that are implemented. In addition, enhanced climate disclosure requirements could accelerate the trend of certain stakeholders and lenders restricting or seeking more stringent conditions with respect to their investments in certain carbon-intensive sectors.

The impact of new laws, regulations and policies and the related interpretations, as well as changes in enforcement practices or regulatory scrutiny generally cannot be predicted, and changes in applicable laws, regulations and policies and the related interpretations and enforcement practices may require extensive system and operational changes, be difficult to implement, increase AEP’s operating costs, require significant capital expenditures, or adversely impact the cost or attractiveness of the products or services AEP offers, or result in adverse publicity and harm AEP’s reputation. 31 RISKS RELATED TO OWNING AND OPERATING GENERATION ASSETS AND SELLING POWER Costs of compliance with existing and evolving environmental laws are significant.

Emissions of nitrogen and sulfur oxides, mercury and particulates and the discharge and disposal of solid waste (including coal-combustion residuals or CCR) resulting from fossil fueled generation plants are subject to increased regulations, controls and mitigation expenses.

A majority of the electricity generated by AEP subsidiaries is produced by the combustion of fossil fuels. Emissions of nitrogen and sulfur oxides, mercury and particulates and the discharge and disposal of solid waste (including coal-combustion residuals or CCR) resulting from fossil fueled generation plants are subject to increased regulations, controls and mitigation expenses.

As of December 31, 2023, OVEC has outstanding indebtedness of approximately $1.1 billion, of which APCo, I&M, and OPCo are collectively responsible for $465 million through the ICPA.

As of December 31, 2024, OVEC has outstanding indebtedness of approximately $997 million, of which APCo, I&M and OPCo are collectively responsible for $433 million through the ICPA.

The delivery of components, materials, equipment and other resources that are critical to AEP’s business operations and corporate strategy has been restricted by domestic and global supply chain upheaval. This has resulted in the shortage of critical items. International tensions, including the ramifications of regional conflict, could further exacerbate the global supply chain upheaval.

The delivery of components, materials, equipment and 27 other resources that are critical to AEP’s business operations and corporate strategy has been restricted by domestic and global supply chain upheaval. This has resulted in the shortage of critical items.

These disruptions and constraints could reduce future net income and cash flows and possibly harm AEP’s financial condition. Supply chain disruptions have contributed to higher prices of components, materials, equipment and other needed commodities and these inflationary increases may continue in the future.

These disruptions and constraints could reduce future net income and cash flows and possibly harm AEP’s financial condition. The United States economy has been in an elevated inflationary environment and supply chain disruptions have contributed to higher prices of components, materials, equipment and other needed commodities.

AEP is currently assessing the proposed rule, but at this time AEP cannot predict the costs of implementation or any potential adverse impacts resulting from the rule. To the extent this rule is finalized as proposed, AEP could incur increased costs relating to the assessment and disclosure of climate-related risks.

At this time AEP cannot predict the costs of implementation or any potential adverse impacts resulting from the rule as adopted. To the extent these rules or any replacement rules are adopted, AEP could incur increased costs relating to the assessment and disclosure of climate-related risks.

Although AEP typically recovers expenditures for pollution control technologies, replacement generation, undepreciated plant balances and associated operating costs from customers, there can be no assurance in the future that AEP will recover the remaining costs associated with such plants. Failure to recover these costs could reduce future net income and cash flows and possibly harm financial condition.

A change in wind patterns or a negative impact to water supplies due to long-term drought conditions or severe flooding could adversely impact AEP’s ability to provide electricity to customers, as well as increase the price they pay for energy.

New climate disclosure rules proposed by the U.S. Securities and Exchange Commission may increase our costs of compliance and adversely impact our business. (Applies to all Registrants) On March 21, 2022, the SEC proposed new rules relating to the disclosure of a range of climate-related risks.

New climate disclosure rules proposed by the U.S. Securities and Exchange Commission may increase our costs of compliance and adversely impact our business. (Applies to all Registrants) On March 24, 2024, the SEC adopted new rules relating to the disclosure of a range of climate-related risks. The rules have been challenged in court and are currently stayed.

AEP’s stock price could be subject to significant fluctuation or otherwise be adversely affected by the events, risks and uncertainties of any shareholder activism. Downgrades in AEP’s credit ratings could negatively affect its ability to access capital. (Applies to all Registrants) The credit ratings agencies periodically review AEP’s capital structure and the quality and stability of earnings and cash flows.

AEP’s stock price could be subject to significant fluctuation or otherwise be adversely affected by the events, risks and uncertainties of any shareholder activism. 26 Downgrades in AEP’s credit ratings could negatively affect its ability to access capital.

Further, deteriorating economic conditions triggered by any cause, including international tariffs, generally result in reduced consumption by customers, particularly industrial customers who may curtail operations or cease production entirely, while an expanding economic environment generally results in increased revenues.

Further, deteriorating economic conditions triggered by any cause, including tariffs, generally result in reduced consumption by customers, particularly industrial customers who may curtail operations or cease production entirely, while an expanding economic environment generally results in increased revenues. The current administration has implemented tariffs on certain imported goods and may impose additional tariffs.

(Applies to all Registrants) AEP relies on access to capital markets as a significant source of liquidity for capital requirements not satisfied by operating cash flows or proceeds from the strategic sale of assets and investments, including subsidiaries or portions thereof, and insurance markets to assist in managing its risk and liability profile.

(Applies to all Registrants) AEP relies on access to capital markets as a significant source of liquidity for capital requirements not satisfied by operating cash flows or proceeds from the strategic sale of assets and investments, including subsidiaries or portions thereof, such as the announced transaction involving a noncontrolling interest in IMTCo and OHTCo.

If a party fails to make payments owed by it under the ICPA, OVEC may not have sufficient funds to honor its payment obligations, including its ongoing operating expenses as well as its indebtedness.

The aggregate power participation ratio of APCo, I&M and OPCo is 43.47%. If a party fails to make payments owed by it under the ICPA, OVEC may not have sufficient funds to honor its payment obligations, including its ongoing operating expenses as well as its indebtedness.

Costs also may include replacement power, any unamortized investment at the end of the useful life of the Cook Plant (whether scheduled or premature), the carrying costs of that investment and retirement costs. The ability to obtain adequate and timely recovery of costs associated with the Cook Plant is not assured.

AEP may not recover all costs related to mitigating these physical and financial risks. 29 To the extent climate change impacts a region’s economic health, it may also impact revenues. AEP’s financial performance is tied to the health of the regional economies AEP serves.

To the extent climate change impacts a region’s economic health, it may also impact revenues. AEP’s financial performance is tied to the health of the regional economies AEP serves.

Disruptions in these markets could reduce or restrict the AEP’s ability to secure sufficient liquidity or secure liquidity at reasonable terms. As of December 31, 2023, approximately 10%, 17%, and 16% of the Registrants’ available credit facilities were with European, Canadian, and Asian banks, respectively.

In addition, AEP has exposure to international banks, including those in Europe, Canada and Asia. Disruptions in these markets could reduce or restrict the AEP’s ability to secure sufficient liquidity or secure liquidity at reasonable terms. As of December 31, 2024, approximately 8%, 25% and 16% of the Registrants’ available credit facilities were with European, Canadian, and Asian banks, respectively.

While AEP maintains insurance relating to cybersecurity events, such insurance is subject to a number of exclusions and may be insufficient to offset any losses, costs or damages experienced.

While AEP maintains insurance relating to cybersecurity events, such insurance is subject to a number of exclusions and may be insufficient to offset any losses, costs or damages experienced. Also, the market for cybersecurity insurance is relatively new and coverage available for cybersecurity events is evolving as the industry matures.

Although these initiatives are designed to encourage wholesale market transactions, access to transmission systems may not be available if transmission capacity is insufficient because of physical constraints or because it is contractually unavailable. Management also cannot predict whether transmission facilities will be expanded in specific markets to accommodate competitive access to those markets.

Also, the market for cybersecurity insurance is relatively new and coverage available for cybersecurity events is evolving as the industry matures. 25 AEP is subject to standards enacted by the North American Electric Reliability Corporation and enforced by FERC regarding protection of critical infrastructure assets required for operating North America's bulk electric system.

AEP is subject to standards enacted by the North American Electric Reliability Corporation and enforced by FERC regarding protection of critical infrastructure assets required for operating North America's bulk electric system.

If AEP is not able to access debt or equity at competitive rates or at all, the ability to finance its operations and implement its strategy and business plan as scheduled could be adversely affected. An inability to access debt and equity may limit AEP’s ability to pursue improvements or acquisitions that it may otherwise rely on for future growth.

Under the ICPA, parties are entitled to receive and are obligated to pay for all OVEC capacity (approximately 2,400 MWs) in proportion to their respective power participation ratios. The aggregate power participation ratio of APCo, I&M and OPCo is 43.47%.

The Inter-Company Power Agreement (ICPA) defines the rights and obligations and sets the power participation ratio of the parties to it. Under the ICPA, parties are entitled to receive and are obligated to pay for all OVEC capacity (approximately 2,400 MWs) in proportion to their respective power participation ratios.

(Applies to AEP and AEP Texas) AEP Texas transmits and distributes electric power that the REPs obtain from power generation facilities owned by third-parties. If power generation is disrupted or if power generation capacity is inadequate, sales of transmission and distribution services may be diminished or interrupted, and results of operations, financial condition and cash flows could be adversely affected.

If power generation is disrupted or if power generation capacity is inadequate, sales of transmission and distribution services may be diminished or interrupted, and results of operations, financial condition and cash flows could be adversely affected.

Volatility, increased interest rates and reduced liquidity in the financial markets could affect AEP’s ability to raise capital on reasonable terms to fund capital needs, including construction costs and refinancing maturing indebtedness. In addition, AEP has exposure to international banks, including those in Europe, Canada, and Asia.

AEP also relies on access to insurance markets to assist in managing its risk and liability profile. Volatility, increased interest rates and reduced liquidity in the financial markets could affect AEP’s ability to raise capital on reasonable terms to fund capital needs, including construction costs and refinancing maturing indebtedness.

If AEP is unable to recover the net book value or carrying value of these assets as part of the sale process, it could reduce future net income and impact financial condition. Shareholder activism could cause AEP to incur significant expense, hinder execution of AEP’s business strategy and impact AEP’s stock price.

If the transaction is unable to be completed, it could reduce future expected cash flows and impact financial condition. Shareholder activism could cause AEP to incur significant expense, hinder execution of AEP’s business strategy and impact AEP’s stock price.

(Applies to all Registrants) AEP is involved in legal proceedings, claims and litigation arising out of its business operations, the most significant of which are summarized in Note 6 - Commitments, Guarantees and Contingencies. Adverse outcomes in these proceedings could require significant expenditures that could reduce future net income and cash flows and negatively impact financial condition.

If AEP is unable to successfully attract and retain an appropriately qualified workforce, future net income and cash flows may be reduced. Changes in the price of purchased power and commodities, the cost of procuring fuel, emission allowances for criteria pollutants and the costs of transport may increase AEP’s cost of purchasing and producing power, impacting financial performance.

Changes in the price of purchased power and commodities, the cost of procuring fuel, emission allowances for criteria pollutants and the costs of transport may increase AEP’s cost of purchasing and producing power, impacting financial performance.

Regulation of greenhouse gas emissions and/or voluntary climate goals could materially increase costs to AEP and its customers or cause some electric generating units to be uneconomical to operate or maintain.

Failure to recover these costs could reduce future net income and cash flows and possibly harm financial condition. 31 Regulation of greenhouse gas emissions could materially increase costs to AEP and its customers or cause some electric generating units to be uneconomical to operate or maintain.

The rules governing the various RTOs, including SPP and PJM, may also change from time to time which could affect costs or revenues.

(Applies to all Registrants) Results are likely to be affected by differences in the market and transmission structures in various regional power markets. The rules governing the various RTOs, including SPP and PJM, may also change from time to time which could affect costs or revenues.

(Applies to AEP and AEPTCo) AEP and AEPTCo are holding companies and have no operations of their own.

AEP and AEPTCo have no income or cash flow apart from dividends paid or other payments due from their subsidiaries. (Applies to AEP and AEPTCo) AEP and AEPTCo are holding companies and have no operations of their own.

If AEP is unable to access capital markets or insurance markets on reasonable terms, it could reduce future net income and cash flows and negatively impact financial condition.

Any adverse developments in tax laws, incentives, credits or regulations, including legislative changes, judicial holdings or administrative interpretations, could have a material and adverse effect on financial condition and results of operations. If AEP is unable to access capital markets or insurance markets on reasonable terms, it could reduce future net income and cash flows and negatively impact financial condition.

While management believes AEP complies with current prevailing laws, one or more taxing jurisdictions could seek to impose incremental or new taxes on the company. In addition, any adverse developments in tax laws, incentives, credits or regulations, including legislative changes, judicial holdings or administrative interpretations, could have a material and adverse effect on financial condition and results of operations.

While management believes AEP complies with current prevailing laws, one or more taxing jurisdictions could seek to impose incremental or new taxes on the company. At the Federal level, management is monitoring the potential for changes in current tax policy, including tax rates, tax credits and incentives.

AEP is a defendant in current litigation relating to HB 6 and AEP or OPCo may be involved in future litigation. 24 RISKS RELATED TO MARKET, ECONOMIC OR FINANCIAL VOLATILITY AND OTHER RISKS AEP’s financial performance may be adversely affected if AEP is unable to successfully operate facilities or perform certain corporate functions.

RISKS RELATED TO MARKET, ECONOMIC OR FINANCIAL VOLATILITY AND OTHER RISKS AEP’s financial performance may be adversely affected if AEP is unable to successfully operate facilities or perform certain corporate functions. (Applies to all Registrants) Performance is highly dependent on the successful operation of generation, transmission and/or distribution facilities.

(Applies to all Registrants except AEPTCo) Operations are subject to extensive federal, state and local environmental statutes, rules and regulations relating to air quality, water quality, waste management, natural resources and health and safety. A majority of the electricity generated by AEP subsidiaries is produced by the combustion of fossil fuels.

RISKS RELATED TO OWNING AND OPERATING GENERATION ASSETS AND SELLING POWER Costs of compliance with existing and evolving environmental laws are significant. (Applies to all Registrants except AEPTCo) Operations are subject to extensive federal, state and local environmental statutes, rules and regulations relating to air quality, water quality, waste management, natural resources and health and safety.

AEP subsidiaries are exposed to risks through participation in the market and transmission structures in various regional power markets that are beyond their control. (Applies to all Registrants) Results are likely to be affected by differences in the market and transmission structures in various regional power markets.

The ability to obtain adequate and timely recovery of costs associated with the Cook Plant is not assured. 23 AEP subsidiaries are exposed to risks through participation in the market and transmission structures in various regional power markets that are beyond their control.

Further, real or alleged violations of environmental regulations, including those related to climate change, or an inability to meet AEP’s voluntary climate goals, could adversely impact AEP’s reputation. AEP may be constrained by the ability to procure resources or labor needed to build new generation at a reasonable price as well as to construct projects on time.

Further, real or alleged violations of environmental regulations, including those related to climate change, or an inability to meet AEP’s voluntary climate aspirations, could adversely impact AEP’s reputation, reduce future net income and cash flows and harm financial condition. AEP may be unable to procure or construct generation capacity when needed or to recover the costs of such generation capacity.

Technology research and development, innovation, and advancements in carbon-free generation are also critical to AEP’s ability to achieve its 2045 goal. AEP’s results of operations could be materially adversely affected to the extent that new federal or state laws or regulations or voluntary climate goals impose any new greenhouse gas emission limits.

Further advancement of affordable new generation technologies and a market for offsets, as well as continued alignment with our states, would be required to achieve net-zero emissions. AEP’s results of operations could be materially adversely affected to the extent that new federal or state laws or regulations impose any new greenhouse gas emission limits.

The generation, transmission and distribution of electricity are dangerous and involve inherent risks of damage to private property and injury to AEP’s workforce and the general public.

Other potential risks associated with wildfires include the inability to secure sufficient insurance coverage, increased costs for insurance and mitigation efforts, regulatory recovery risk, litigation risk, and the potential for a credit downgrade and subsequent additional costs to access capital markets. 29 The generation, transmission and distribution of electricity are dangerous and involve inherent risks of damage to private property and injury to AEP’s workforce and the general public.

Adverse outcomes in these proceedings could require significant expenditures that could reduce future net income and cash flows and negatively impact financial condition. Disruptions at power generation facilities owned by third-parties could interrupt the sales of transmission and distribution services.

Disruptions at power generation facilities owned by third-parties could interrupt the sales of transmission and distribution services. (Applies to AEP and AEP Texas) AEP Texas transmits and distributes electric power that the REPs obtain from power generation facilities owned by third-parties.

AEP routinely submits IRPs in various regulatory jurisdictions to address future generation and capacity needs. These IRPs take into account economics, customer demand, grid reliability and resilience, regulations and RTO capacity requirements. The objective of the IRPs is to recommend future generation and capacity resources that provide the most cost-efficient and reliable power to customers.

The objective of the IRPs is to recommend future generation and capacity resources that provide the most cost-efficient and reliable power to customers. AEP remains committed to making generation and capacity resource decisions that provide the most cost-efficient and reliable power to customers, irrespective of any specific carbon-reduction goal.

Separate from the remainder of AEP Onsite Partners, AEP and the joint owner have signed an agreement in December 2023 to sell NMRD to a non-affiliated third-party. Any planned sale of assets and investments, including subsidiaries, may not occur for any number of reasons beyond our control, including regulatory approval.

Our financial position may be adversely impacted if announced dispositions do not occur as planned. (Applies to AEP) Any planned sale of assets and investments, including the announced transaction involving a noncontrolling interest in IMTCo and OHTCo, may not occur for any number of reasons beyond our control, including regulatory approval.

Any negative ratings actions could constrain the capital available to AEP and could limit access to funding for operations. AEP’s business is capital intensive, and AEP is dependent upon the ability to access capital at rates and on terms management determines to be attractive.

(Applies to all Registrants) The credit ratings agencies periodically review AEP’s capital structure and the quality and stability of earnings and cash flows. Any negative ratings actions could constrain the capital available to AEP and could limit access to funding for operations.

OVEC may require additional liquidity and other capital support. (Applies to AEP, APCo, I&M and OPCo) AEP and several nonaffiliated utility companies own OVEC. The Inter-Company Power Agreement (ICPA) defines the rights and obligations and sets the power participation ratio of the parties to it.

Management also cannot predict whether transmission facilities will be expanded in specific markets to accommodate competitive access to those markets. 33 OVEC may require additional liquidity and other capital support. (Applies to AEP, APCo, I&M and OPCo) AEP and several nonaffiliated utility companies own OVEC.

Removed

Ohio House Bill 6 (HB 6), which provides for beneficial cost recovery for OPCo and for plants owned by OVEC, has come under public scrutiny. (Applies to AEP and OPCo) In 2019, Ohio adopted and implemented HB 6 which benefits OPCo by authorizing rate recovery for certain costs including renewable energy contracts, OVEC’s coal-fired generating units and energy efficiency measures.

Added

New legislation could be adopted in any of the states in which we operate that could alter the regulatory framework and prevent us from getting timely recovery of our costs and investments.

Removed

AEP and OPCo engaged in lobbying efforts and provided testimony during the legislative process in connection with HB 6. In July 2020, an investigation led by the U.S.

Added

International tensions from any source, including the ramifications of regional conflict or increased tariffs, could further exacerbate the global supply chain upheaval. These disruptions and shortages could adversely impact business operations and corporate strategy. The current administration has implemented tariffs on certain imported goods and may impose additional tariffs.

Removed

Attorney’s Office resulted in a federal grand jury indictment of an Ohio legislator and associates and Generation Now, an entity registered as a 501(c)(4) social welfare organization, in connection with an alleged racketeering conspiracy involving the adoption of HB 6.

Added

A prolonged continuation or a further increase in the severity of supply chain and inflationary disruptions, including increased tariffs, could result in additional increases in the cost of certain goods, services and cost of capital and further extend lead times. AEP typically recovers increases in capital expenses from customers through rates in regulated jurisdictions.

Removed

Certain defendants in that case had previously plead guilty and, in March 2023, a federal jury convicted the Ohio legislator and another individual of participating in the racketeering conspiracy. If certain provisions of HB 6 were to be eliminated, it is unclear whether new legislation addressing similar issues would be adopted.

Added

If AEP is unable to successfully attract and retain an appropriately qualified workforce, operations may be negatively impacted and future net income and cash flows may be reduced.

Removed

To the extent that OPCo is unable to recover the costs currently authorized by HB 6, it could reduce future net income and cash flows and impact financial condition.

Added

The occurrence of one or more wildfires could cause tremendous loss, impact the market value and credit ratings of our securities and have a material adverse effect on our financial condition.

Removed

In addition, the impact of continued public scrutiny of HB 6 is not known and may have an adverse impact on AEP and OPCo, including their relationship with regulatory and legislative authorities, customers and other stakeholders.

Added

(Applies to all Registrants) More frequent and severe drought conditions, extreme swings in amount and timing of precipitation, changes in vegetation, unseasonably warm temperatures, very low humidity, stronger winds and other factors have increased the duration of the wildfire season and the potential impact of an event.

Removed

(Applies to all Registrants) Performance is highly dependent on the successful operation of generation, transmission and/or distribution facilities.

Added

AEP’s infrastructure could pose risks to safety and system reliability and wildfire mitigation initiatives may not be successful or effective in preventing or reducing wildfire-related events. Wildfires can occur even when effective mitigation procedures are followed. Despite AEP’s early-stage wildfire mitigation initiatives, a wildfire could be ignited, spread and cause damages, which could subject AEP to significant liability.

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

7 edited+2 added−0 removed14 unchanged

2023 filing

2024 filing

Biggest changeAEP’s enterprise-wide security program includes cyber and physical security and incorporates many of the guidelines set forth in the National Institute of Standards and Technology Cybersecurity Framework. AEP has a primary and a back-up NERC Critical Infrastructure Protection Senior Manager, who is responsible for ensuring alignment of compliance with the enterprise-wide security program.

Biggest changeCook Plant is also subject to NRC regulation for cybersecurity. AEP’s enterprise-wide security program includes cyber and physical security and incorporates many of the guidelines set forth in the National Institute of Standards and Technology Cybersecurity Framework.

AEP is not aware of any occurrence from cybersecurity threats, including as a result of any previous cybersecurity incidents, that has materially affected or is reasonably likely to materially affect AEP’s business strategy, results of operations, cash flows or financial condition. AEP has undertaken a variety of actions to monitor and address cyber-related risks.

AEP is not aware of any occurrence from cybersecurity threats, including as a result of 34 any previous cybersecurity incidents, that has materially affected or is reasonably likely to materially affect AEP’s business strategy, results of operations, cash flows or financial condition. AEP has undertaken a variety of actions to monitor and address cyber-related risks.

These NERC-led efforts test and further develop the coordination, threat sharing and interaction between utilities and various government 34 agencies relative to potential cyber and physical threats against the nation’s electric grid. AEP also conducts internal exercises to test and further refine AEP’s cyber response plans.

These NERC-led efforts test and further develop the coordination, threat sharing and interaction between utilities and various government agencies relative to potential cyber and physical threats against the nation’s electric grid. AEP also conducts internal exercises to test and further refine AEP’s cyber response plans.

AEP’s Chief Executive Officer and executive team participate in interactive threat briefings from AEP’s Chief Security Officer and/or Chief Information & Technology Officer on a regular basis. AEP’s strategy and procedure for managing cyber-related risks is integrated within its enterprise risk management processes.

AEP’s Chief Executive Officer and executive team participate in interactive threat briefings from AEP’s CSO and/or Chief Information & Technology Officer on a regular basis. AEP’s strategy and procedure for managing cyber-related risks is integrated within its enterprise risk management processes.

AEP maintains dedicated cybersecurity and physical security teams which are responsible for the design, implementation and execution of AEP’s security risk management strategy, which includes cybersecurity. AEP’s cybersecurity team operates a 24/7 Cybersecurity Intelligence and Response Center responsible for monitoring the AEP System for cyber risks and threats.

AEP’s CSO leads the cybersecurity and physical security teams which are responsible for the design, implementation and execution of AEP’s security risk management strategy, which includes cybersecurity. AEP’s cybersecurity team operates a 24/7 Cybersecurity Intelligence and Response Center responsible for monitoring the AEP System for cyber risks and threats.

The cybersecurity team constantly scans the AEP System for cyber risks and threats. In addition, the cybersecurity team actively monitors best practices, performs penetration testing, leads response exercises and internal awareness campaigns and provides training and communication across the organization.

The cybersecurity team constantly scans the AEP System for cyber risks and threats. In addition, under the direction of the CSO, the cybersecurity team actively monitors best practices, performs penetration testing, leads response exercises and internal awareness campaigns and provides training and communication across the organization.

Critical cyber assets, such as data centers, power plants, transmission operations centers and business networks are protected using multiple layers of cybersecurity controls and authentication. Cyber hackers and other malicious actors have caused material disruption by successfully breaching a number of very secure facilities of entities across the spectrum of industries, including federal agencies and financial institutions.

Cyber hackers and other malicious actors have caused material disruption by successfully breaching a number of very secure facilities of entities across the spectrum of industries, including federal agencies and financial institutions.

Added

AEP'’s Chief Security Officer (CSO) has accountability for cyber aspects of third-party risk and data loss prevention and is also its NERC Critical Infrastructure Protection Senior Manager, who is responsible for ensuring alignment of compliance with the enterprise-wide security program. AEP’s CSO possesses extensive experience across cybersecurity, risk and data controls and infrastructure engineering.

Added

AEP’s CSO was the Chief Security Officer at Bread Financial Holdings, Inc., a publicly registered financial services company, and an executive director of cyber security at JPMorgan Chase & Co. prior to joining AEP. Critical cyber assets, such as data centers, power plants, transmission operations centers and business networks are protected using multiple layers of cybersecurity controls and authentication.

Item 2. Properties

Properties — owned and leased real estate

11 edited+2 added−3 removed12 unchanged

2023 filing

2024 filing

Biggest changeTRANSMISSION AND DISTRIBUTION FACILITIES The AEP System has significant investments in transmission and distribution lines across its Vertically Integrated Utilities, Transmission and Distribution Utilities and AEP Transmission Holdco Segments. See Item 1 for additional information relating to the total overhead circuit miles of transmission and distribution lines by operating company.

Biggest changeFigures presented reflect only the portion owned by WPCo. TRANSMISSION AND DISTRIBUTION FACILITIES The AEP System has significant investments in transmission and distribution lines across its Vertically Integrated Utilities, Transmission and Distribution Utilities and AEP Transmission Holdco Segments. TITLE TO PROPERTY The AEP System’s generating facilities are generally located on lands owned in fee simple.

APCo Plant Name Units State Fuel Type Net Maximum Capacity (MWs) Year Plant or First Unit Commissioned Ceredo 6 WV Natural Gas 516 2001 Dresden 3 OH Natural Gas 665 2012 Smith Mountain 5 VA Pumped Storage 585 1965 Amos 3 WV Steam - Coal 2,950 1971 Mountaineer 1 WV Steam - Coal 1,320 1980 Clinch River 2 VA Steam - Natural Gas 465 1958 Hydro (Various Plants) Various VA Hydro 158 1906-1964 Hydro (Various Plants) Various WV Hydro 53 1935-1938 Solar NA VA Solar 5 2023 Total MWs 6,717 I&M Plant Name Units State Fuel Type Net Maximum Capacity (MWs) Year Plant or First Unit Commissioned Rockport (a) 2 IN Steam - Coal 1,310 1984 Cook 2 MI Steam - Nuclear 2,296 1975 Hydro (Various Plants) Various IN Hydro 7 1904-1913 Hydro (Various Plants) Various MI Hydro 13 1908-1923 Solar (Various Plants) NA IN Solar 31 2016-2021 Solar (Various Plants) NA MI Solar 5 2016 Total MWs 3,662 (a) I&M owns a 50% interest in the Rockport Plant units.

APCo Plant Name Units State Fuel Type Net Maximum Capacity (MWs) Year Plant or First Unit Commissioned Ceredo 6 WV Natural Gas 516 2001 Dresden 3 OH Natural Gas 665 2012 Smith Mountain 5 VA Pumped Storage 585 1965 Amos 3 WV Steam - Coal 2,950 1971 Mountaineer 1 WV Steam - Coal 1,320 1980 Clinch River 2 VA Steam - Natural Gas 465 1958 Hydro (Various Plants) Various VA Hydro 158 1906-1964 Hydro (Various Plants) Various WV Hydro 53 1935-1938 Amherst NA VA Solar 5 2023 Total MWs 6,717 I&M Plant Name Units State Fuel Type Net Maximum Capacity (MWs) Year Plant or First Unit Commissioned Rockport (a) 2 IN Steam - Coal 1,310 1984 Cook 2 MI Steam - Nuclear 2,296 1975 Hydro (Various Plants) Various IN Hydro 7 1904-1913 Hydro (Various Plants) Various MI Hydro 13 1908-1923 Solar (Various Plants) NA IN Solar 31 2016-2021 Solar (Various Plants) NA MI Solar 5 2016 Total MWs 3,662 (a) I&M owns a 50% interest in the Rockport Plant units.

Figures presented reflect only the portion owned by SWEPCo. NA Not applicable. 37 WPCo Plant Name Units State Fuel Type Net Maximum Capacity (MWs) Year Plant or First Unit Commissioned Mitchell (a) 2 WV Steam - Coal 780 1971 (a) WPCo owns 50% in the Mitchell Plant units. KPCo owns the remaining 50%.

Figures presented reflect only the portion owned by SWEPCo. NA Not applicable. WPCo Plant Name Units State Fuel Type Net Maximum Capacity (MWs) Year Plant or First Unit Commissioned Mitchell (a) 2 WV Steam - Coal 780 1971 (a) WPCo owns 50% in the Mitchell Plant units. KPCo owns the remaining 50%.

ITEM 2. PROPERTIES GENERATION FACILITIES The tables below summarize the net maximum capacity of AEP's owned generation plants as of December 31, 2023. AEP subsidiaries serve customer electricity needs from these facilities and from purchased power in the PJM and SPP markets based on demand and other economic conditions.

ITEM 2. PROPERTIES GENERATION FACILITIES The tables below summarize the net maximum capacity of AEP's owned generation plants as of December 31, 2024. AEP subsidiaries serve customer electricity needs from these facilities and from purchased power in the PJM and SPP markets based on demand and other economic conditions.

SWEPCo Plant Name Units State Fuel Type Net Maximum Capacity (MWs) Year Plant or First Unit Commissioned Mattison 4 AR Natural Gas 314 2007 Stall 3 LA Natural Gas 534 2010 Flint Creek (a) 1 AR Steam - Coal 259 1978 Turk (a) 1 AR Steam - Coal 477 2012 Welsh (b) 2 TX Steam - Coal 1,053 1977 Arsenal Hill 1 LA Steam - Natural Gas 111 1960 Knox Lee 1 TX Steam - Natural Gas 344 1950 Lieberman 3 LA Steam - Natural Gas 219 1947 Wilkes 3 TX Steam - Natural Gas 889 1964 North Central Wind Energy Facilities (c) NA OK Wind 809 2021-2022 Total MWs 5,009 (a) Jointly-owned with nonaffiliated entities.

SWEPCo Plant Name Units State Fuel Type Net Maximum Capacity (MWs) Year Plant or First Unit Commissioned Mattison 4 AR Natural Gas 314 2007 Stall 3 LA Natural Gas 534 2010 Flint Creek (a) 1 AR Steam - Coal 259 1978 Turk (a) 1 AR Steam - Coal 477 2012 Welsh (b) 2 TX Steam - Coal 1,056 1977 Arsenal Hill 1 LA Steam - Natural Gas 111 1960 Knox Lee 1 TX Steam - Natural Gas 344 1950 Lieberman 3 LA Steam - Natural Gas 219 1947 Wilkes 3 TX Steam - Natural Gas 889 1964 North Central Wind Energy Facilities (c) NA OK Wind 809 2021-2022 Diversion Wind Farm NA TX Wind 201 2024 Total MWs 5,213 (a) Jointly-owned with nonaffiliated entities.

Unless allowed to be recovered through rates, future losses or liabilities which are not completely insured could reduce net income and impact the financial conditions of AEP and subsidiaries. For risks related to owning a nuclear generating unit, see the “Nuclear Contingencies” section of Note 6 - Commitments, Guarantees and Contingencies included in the 2023 Annual Report for additional information.

In this assessment process, assumptions are continually being reviewed as new information becomes available and assessments and plans are modified, as appropriate. AEP forecasts approximately $7.5 billion of construction expenditures for 2024.

PSO Plant Name Units State Fuel Type Net Maximum Capacity (MWs) Year Plant or First Unit Commissioned Comanche 3 OK Natural Gas 237 1973 Northeastern, Unit 1 1 OK Natural Gas 470 1961 Riverside, Units 3 and 4 2 OK Natural Gas 160 2008 Southwestern, Units 4 and 5 2 OK Natural Gas 168 2008 Weleetka 2 OK Natural Gas 84 1975 Northeastern, Unit 3 1 OK Steam - Coal 472 1979 Northeastern, Unit 2 1 OK Steam - Natural Gas 434 1961 Riverside, Units 1 and 2 2 OK Steam - Natural Gas 896 1974 Southwestern, Units 1, 2 and 3 3 OK Steam - Natural Gas 446 1952 Tulsa 2 OK Steam - Natural Gas 318 1956 North Central Wind Energy Facilities (a) NA OK Wind 675 2021-2022 Rock Falls NA OK Wind 155 2023 Total MWs 4,515 (a) PSO owns a 45.5% interest and SWEPCo owns the remaining 54.5% interest in Sundance, Maverick and Traverse.

PSO Plant Name Units State Fuel Type Net Maximum Capacity (MWs) Year Plant or First Unit Commissioned Comanche 3 OK Natural Gas 238 1973 Northeastern, Unit 1 1 OK Natural Gas 470 1961 Riverside, Units 3 and 4 2 OK Natural Gas 160 2008 Southwestern, Units 4 and 5 2 OK Natural Gas 166 2008 Weleetka 2 OK Natural Gas 75 1975 Northeastern, Unit 3 1 OK Steam - Coal 472 1979 Northeastern, Unit 2 1 OK Steam - Natural Gas 435 1961 Riverside, Units 1 and 2 2 OK Steam - Natural Gas 879 1974 Southwestern, Units 1, 2 and 3 3 OK Steam - Natural Gas 446 1952 Tulsa 2 OK Steam - Natural Gas 318 1956 North Central Wind Energy Facilities (a) NA OK Wind 675 2021-2022 Rock Falls NA OK Wind 155 2017 Total MWs 4,489 (a) PSO owns a 45.5% interest and SWEPCo owns the remaining 54.5% interest in Sundance, Maverick and Traverse.

Figures presented reflect only the portion owned by SWEPCo. The Arkansas jurisdictional portion of SWEPCo’s interest in Turk Plant is not in rate base. (b) In November 2020, management announced it will cease using coal at the Welsh Plant in 2028. (c) SWEPCo owns a 54.5% interest and PSO owns the remaining 45.5% interest in Sundance, Maverick and Traverse.

Figures presented reflect only the portion owned by SWEPCo. The Arkansas jurisdictional portion of SWEPCo’s interest in Turk Plant is not in rate base. 37 (b) In November 2020, management announced it will cease using coal at the Welsh Plant in 2028.

TITLE TO PROPERTY The AEP System’s generating facilities are generally located on lands owned in fee simple. The greater portion of the transmission and distribution lines of the AEP System has been constructed over lands of private owners pursuant to easements or along public highways and streets pursuant to appropriate statutory authority.

The greater portion of the transmission and distribution lines of the AEP System has been constructed over lands of private owners pursuant to easements or along public highways and streets pursuant to appropriate statutory authority.

See the “Budgeted Capital Expenditures” section of Management’s Discussion and Analysis of Financial Condition and Results of Operations included in the 2023 Annual Report for additional information. 38 POTENTIAL UNINSURED LOSSES Some potential losses or liabilities may not be insurable or the amount of insurance carried may not be sufficient to meet potential losses and liabilities, including liabilities relating to damage to AEP’s generation plants and costs of replacement power.

POTENTIAL UNINSURED LOSSES Some potential losses or liabilities may not be insurable or the amount of insurance carried may not be sufficient to meet potential losses and liabilities, including liabilities relating to damage to AEP’s generation plants and costs of replacement power.

Removed

Figures presented reflect only the portion owned by WPCo.

Added

In December 2024, SWEPCo filed an application for a Certificate of Convenience and Necessity (CCN) with the APSC, LPSC and PUCT to convert Welsh Plant, Units 1 and 3 to natural gas in 2028 and 2027, respectively. (c) SWEPCo owns a 54.5% interest and PSO owns the remaining 45.5% interest in Sundance, Maverick and Traverse.

Removed

Generation & Marketing Segment Renewable Power Size of Energy Resource AEP Energy Supply, LLC Division Renewable Energy Resource Location In-Service or Under Construction 195 MW AEP OnSite Partners (a) Solar Seventeen states (b) In-service 4 MW AEP OnSite Partners (a) Solar Two states (c) Under Construction (a) In April 2023, AEP made a decision to include AEP Onsite Partners in a sales process that is currently targeted to be completed in the first half of 2024.

Added

See the “Budgeted Capital Expenditures” section of Management’s Discussion and Analysis of Financial Condition and Results of Operations for additional information.

Removed

See the “Planned Sale of AEP Energy and AEP Onsite Partners” section of Executive Overview included in the 2023 Annual Report for additional information. (b) California, Colorado, Florida, Hawaii, Illinois, Iowa, Minnesota, Nebraska, New Hampshire, New Jersey, New Mexico, New York, Ohio, Rhode Island, Texas, Vermont and Wisconsin. (c) Ohio and Wisconsin.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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2024 filing

Biggest changeFor more information see the “Dividend Restrictions” section of Note 14 - Financing Activities included in the 2023 Annual Report. AEPTCo AEP owns the entire interest in AEPTCo through its wholly-owned subsidiary AEP Transmission Holdco. AEP COMMON STOCK INFORMATION AEP common stock is principally traded using the trading symbol “AEP” on the NASDAQ Stock Market.

Biggest changeAEP Texas, APCo, I&M, OPCo, PSO and SWEPCo The common stock of these companies is held solely by AEP. For more information see the “Dividend Restrictions” section of Note 15 - Financing Activities. AEPTCo AEP owns the entire interest in AEPTCo through its wholly-owned subsidiary AEP Transmission Holdco.

MARKET FOR REGISTRANTS’ COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES AEP In addition to the AEP Common Stock Information section below, the remaining information required by this item is incorporated herein by reference to the material under the “Dividend Policy and Restrictions” section of Management’s Discussion and Analysis of Financial Condition and Results of Operations included in the 2023 Annual Report.

MARKET FOR REGISTRANTS’ COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES AEP In addition to the AEP Common Stock Information section below, the remaining information required by this item is incorporated herein by reference to (i) the material under the “Dividend Policy and Restrictions” section of Management’s Discussion and Analysis of Financial Condition and Results of Operations and (ii) Note 16 Stock-Based Compensation.

Source: S&P Dow Jones Indices LLC. Data as of December 31, 2023. Past performance is no guarantee of future results. Chart provided for illustrative purposes. 40

The performance graph assumes an initial investment of $100 on December 31, 2019 and that all dividends were reinvested. Source: S&P Dow Jones Indices LLC. Data as of December 31, 2024. Past performance is no guarantee of future results. Chart provided for illustrative purposes. 40

As of December 31, 2023, AEP had 49,023 registered shareholders. The performance graph below compares the cumulative total return among AEP, the S&P 500 Index and the S&P Electric Utilities (SP833) Index over a five year period. The performance graph assumes an initial investment of $100 on December 31, 2018 and that all dividends were reinvested.

AEP COMMON STOCK INFORMATION AEP common stock is principally traded using the trading symbol “AEP” on the NASDAQ Stock Market. As of December 31, 2024, AEP had 44,820 registered shareholders. The performance graph below compares the cumulative total return among AEP, the S&P 500 Index and the S&P 500 Utilities (Sector) Index over a five year period.

During the quarter ended December 31, 2023, neither AEP nor its publicly-traded subsidiaries purchased equity securities that are registered by AEP or its publicly-traded subsidiaries pursuant to Section 12 of the Exchange Act. AEP Texas, APCo, I&M, OPCo, PSO and SWEPCo The common stock of these companies is held solely by AEP.

During the quarter ended December 31, 2024, neither AEP nor its publicly-traded subsidiaries purchased or issued equity securities that are registered by AEP or its publicly-traded subsidiaries pursuant to Section 12 of the Exchange Act other than in amounts that were not material as described in Note 16 referenced above.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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2024 filing

Biggest changeAEP Texas, AEPTCo, APCo, I&M, OPCo, PSO and SWEPCo Omitted pursuant to Instruction I(2)(a). Management’s narrative analysis of the results of operations and other information required by Instruction I(2)(a) is incorporated herein by reference to the material under Management’s Discussion and Analysis of Financial Condition and Results of Operations in the 2023 Annual Report.

Year-to-year comparisons between 2022 and 2021 have been omitted from this Form 10-K but may be found in "Management's Discussion and Analysis of Financial Condition" in Part II, Item 7 of our Form 10-K for the fiscal year ended December 31, 2022, which specific discussion is incorporated herein by reference.

Year-to-year comparisons between 2023 and 2022 have been omitted from this Form 10-K but may be found in "Management's Discussion and Analysis of Financial Condition" in Part II, Item 7 of our Form 10-K for the fiscal year ended December 31, 2023, which specific discussion is incorporated herein by reference.

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS AEP The information required by this item is incorporated herein by reference to the material under Management’s Discussion and Analysis of Financial Condition and Results of Operations in the 2023 Annual Report.

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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2024 filing

Biggest changeITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK AEP, AEP Texas, AEPTCo, APCo, I&M, OPCo, PSO and SWEPCo The information required by this item is incorporated herein by reference to the material under the “Quantitative and Qualitative Disclosures About Market Risk” section of Management’s Discussion and Analysis of Financial Condition and Results of Operations in the 2023 Annual Report.

Top changes in American Electric Power's 2024 10-K

Item 1. Business

Item 1A. Risk Factors

Item 1C. Cybersecurity

Item 2. Properties

Item 5. Market for Registrant's Common Equity

Item 7. Management's Discussion & Analysis

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Other AEP 10-K year-over-year comparisons